Canadian Loonie Struggles Amid Escalating Trade Tensions

The Canadian Dollar is struggling to gain strength as trade tensions between the US and Canada continue to escalate. The imposition of 50% tariffs on a range of Canadian goods by the US has sparked concerns over the impact on the Canadian economy, limiting the Loonie's ability to strengthen.

Canadian Prime Minister Mark Carney announced tariffs of up to 50% on around $20 billion worth of US imports in response. The move aims to offset the effects of the US tariffs and protect Canadian industries.

The Canadian Dollar does receive some support from oil prices, which are maintaining a premium due to geopolitical risks. As Canada is a major oil exporter to the US, resilient energy prices are helping to limit downside pressure on its currency.