Trump Targets Canadian Dollar 'Imbalance' Amid Tariff War Escalation

US President Donald Trump has taken issue with the exchange rate between the US and Canadian dollars, calling it an 'imbalance' that is 'unacceptable'. The current exchange rate stands at 1.38 CAD per 1 USD.

This comes as the two countries engage in a tariff war, with the US imposing a 50% tariff on approximately $20 billion worth of Canadian imports last month. In response, Canada's Prime Minister Mark Carney announced plans to implement retaliatory tariffs of the same scale starting August 8th.

Trump's remarks suggest that he perceives the weak Canadian dollar as an unfair advantage in trade with the US. The annual average exchange rate has risen from 1.25 CAD per USD in 2021 to 1.40 CAD last year, according to statistics from the Bank of Canada.