US Dollar Rises as Trade War with Canada Escalates and Sanctions on Iran Tighten

The US dollar has strengthened against nearly all currencies as trade tensions escalate between the US and Canada. The breakdown in talks, which had been ongoing for some time, has led to a deterioration of relations between the two countries.

President Trump granted Canada a three-day grace period from 50% tariffs on $20 billion worth of Canadian goods, but Prime Minister Carney downplayed the progress made, stating that many issues remain unresolved. The risk of further escalation is now higher than ever.

In another development, US economic sanctions on Iran are intensifying. Treasury Secretary Bessent has written an editorial in the Financial Times, warning others to join the US in imposing sanctions or face secondary penalties.