Canadian Dollar Unfazed by Latest US Tariffs

The Canadian dollar has been largely unaffected by the latest US tariffs on various goods from Canada, including beer, wine, spirits, whey, molasses, and motorcycles over 800cc. These products make up a small portion of Canada's exports to the US, with most goods still crossing the border duty-free under the Canada-United States-Mexico Agreement (CUSMA).

The real threat to the Canadian dollar would come from a 50% tariff on all Canadian cars, trucks, and auto parts, which has been hinted at by President Trump but remains unconfirmed. This could have a significant impact on the currency, as autos are one of Canada's largest exports to the US.

So far, the only reaction from the Canadian dollar has been a small spike near 1.4800 in February 2025, following the first US tariff order. The pair has since returned to its previous level and has not moved significantly on any given day due to the trade war.