Trump Slams Loonie as 'Unacceptable' Imbalance with US Dollar

US President Donald Trump has taken issue with the exchange rate between the US and Canadian dollars. In a post on his Truth Social platform, he stated that 'Canada's (currency) Dollar imbalance with the U.S. is unacceptable'.

The Canadian dollar has been trading at around 1.38 to the US dollar for some time now. This means that American buyers pay less for Canadian goods and Canadian buyers pay more for American ones.

Flavio Volpe, president of the Canadian Automotive Parts Manufacturers' Association, has calculated what currency parity would mean for 2025. He found that if the loonie traded even with the US dollar all year, American importers would have paid an extra $152 billion for Canadian goods, while Canadian buyers would have saved roughly $133 billion on what they spent on American goods.

The Office of the US Trade Representative has put 2025 US goods imports from Canada at $381.9 billion and goods exports to Canada at $333.6 billion. Recalculating both totals at parity produces almost exactly the swings Volpe cited.