Trump Hits Pause on Proposed 50% Tariffs, US Dollar Drops Against Loonie

The US dollar has dipped to C$1.3877 against the Canadian dollar as President Trump pauses a proposed 50% tariff on Canadian imports, which was set to take effect on August 2025.

The tariffs were meant to target dairy, alcohol, electronics, apparel, and building materials, covering a wide range of cross-border commerce. However, instead of implementing the tariffs, the administration opted for another delay.

This move has provided temporary relief for Canadian exporters, who can maintain current pricing on their goods entering the US market. However, investors should note that the tariffs haven't been cancelled, only paused.