Trump Labels Canada's Currency Gap 'Unacceptable' Amid Trade Dispute
US President Donald Trump has called Canada's currency gap 'unacceptable', stating that it has lasted for years but will no longer continue. In a post on Sunday, he mentioned that parity between the US and Canadian dollar would require a 38.4% gain in the Canadian dollar.
The current exchange rate is 1.3840 CAD/USD, meaning one Canadian dollar is worth approximately 72.25 cents USD. To reach parity, the CAD would need to appreciate by 38.4%, or fall to 1.0000 CAD/USD.
However, experts caution that Trump's statement alone cannot establish a new exchange-rate regime, as Canada operates a floating currency and its central bank targets inflation.
The Canadian government has announced a counter-tariff package worth C$27.6 billion, which will go into effect on Tuesday. The tariffs cover steel, dairy, and other products.