Canadian Dollar Takes Hit After Trade Talks Collapse

The Canadian dollar has taken a hit after trade talks between Canada and the U.S. collapsed over the weekend.

According to early trading data, the loonie is down 0.45% and trading at $0.7223 against the U.S. dollar.

This decline marks a continued downward trend for the Canadian currency, which has fallen as much as 5% against the U.S. dollar in 2026.

So far this year, the loonie peaked at $0.74 U.S. in January but hit a low of $0.70 U.S. in June.

The collapse of trade talks between Ottawa and Washington has led to a new round of tariffs on Canadian goods, with the U.S. imposing 50% duties on $20 billion worth of imports.

Canadian Prime Minister Mark Carney has vowed to retaliate 'dollar for dollar' with its own tariffs starting September 8.