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USD/CAD rises as Trump issues 50% tariffs on about $20B in Canadian exports
The new tariffs, effective in about 30 days and applied regardless of USMCA compliance, exclude energy, potash, critical minerals and items already hit by Section 232 duties.
The US dollar strengthened versus the Canadian dollar after President Donald Trump signed three proclamations that impose 50% tariffs on about $20 billion of Canadian exports, including alcohol, dairy products, motor vehicles, cement, hockey equipment and electrical machinery, according to Action Forex.
The measures are set to take effect in roughly 30 days and will apply regardless of compliance with the US-Mexico-Canada Agreement, while exempting energy, potash, critical minerals, and products already subject to Section 232 duties.
Action Forex said the market reaction reflects concern about broader US trade-policy direction, noting Washington has increasingly expanded tariffs on Canadian goods using legal authorities outside the USMCA framework since early 2025.
It added that the USD/CAD move also has technical backing, with the pair rebounding from 1.4002 after testing support around 1.3965, suggesting the decline from 1.4247 was corrective rather than the start of a larger reversal.