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Canadian dollar slips as Trump Canada tariff deadline nears
The US retaliation tariffs are still set to begin at 12:01 a.m. on August 19, with traders also trimming expectations for Bank of Canada rate hikes, according to Forexlive.
The Canadian dollar weakened as markets refocused on a looming US retaliation tariff deadline involving Canada, with no breakthrough reported in discussions between President Donald Trump and Prime Minister Mark Carney. Forexlive cited a White House official saying the call did not produce a resolution that would lead Trump to delay the measures, which are scheduled to take effect at 12:01 a.m. on August 19.
The tariff risk is particularly notable because the planned US duties include 50% tariffs on a broad range of Canadian goods, according to Forexlive. With no sign of a deal before the cutoff, traders are again weighing the potential impact on trade and growth expectations.
Forexlive also said tariff concerns have led traders to reduce expectations for Bank of Canada rate hikes, adding another pressure point for the Canadian dollar. The outlet framed the key variable going forward as whether negotiations can produce an agreement before the deadline, which could offer relief for CAD, or whether implementation keeps trade uncertainty elevated.