Trump Slams Loonie as Trade Tensions Escalate
US President Donald Trump sparked controversy on September 6, 2026, by criticizing Canada's currency, calling it 'unacceptable' due to its long-term performance against the US dollar. In a statement posted on his social media platform Truth Social, he said: 'Canada's (currency) Dollar imbalance with the US is unacceptable.' This marked a fresh escalation in the trade dispute between the two countries.
The Canadian dollar has mostly lagged behind the greenback over the past 15 years, with a long-term average of about 1 US dollar to 1.24 Canadian dollars, according to Bloomberg and TRT World. As of September 4, 2026, one US dollar bought 1.3840 Canadian dollars, making one Canadian dollar worth roughly 72 US cents (Bank of Canada data). This exchange-rate dynamic has real implications for trade, as a weaker Canadian dollar makes Canadian goods more affordable for American buyers and US exports pricier for Canadian consumers.
Trump's administration has argued that this 'imbalance' gives Canada an unfair trade advantage in sectors like autos, steel, aluminum, and dairy. However, Canadian officials have rejected this characterization, saying their currency is freely traded and the Bank of Canada targets inflation, not exchange rates (Reuters).