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USD/CAD holds above 1.4100 after new 50% Canada tariff threat
The move comes after the White House announced a fresh 50% tariff round on most Canadian goods and Canada’s PM Mark Carney agreed to accelerated trade talks with Washington.
USD/CAD was trading just above the 1.4100 level in the North American session, up about 0.2%, and extending a second straight day of gains, according to FXStreet.
FXStreet said the rebound followed the pair’s July slide from around the 1.4250 area to its 50-day EMA, a level it defended last week, as tariff headlines shifted the focus of the trade to Canada.
The renewed pressure traces to a new 50% tariff round on most Canadian goods that the White House introduced as retaliation for alleged trade discrimination against US products, with follow-through arriving Tuesday after US Trade Representative Jamieson Greer said action against dozens of countries is coming soon.
FXStreet added that Canada’s response includes accelerated trade talks with Washington, reflecting the USMCA review cycle, while the Bank of Canada’s July Monetary Policy Report had embedded a 5.0% average US tariff on Canada, a gap that now appears to have widened as markets factor in higher tariff rates.