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Canadian and US negotiators hold talks before midnight tariff deadline
Washington is set to impose 50% tariffs on about $20 billion of Canadian goods at 12:01 a.m. Wednesday, a timeline traders say could drive near-term moves in the Canadian dollar.
Canadian and U.S. negotiators are holding last-minute talks ahead of a midnight deadline for Washington’s proposed tariffs on roughly $20 billion of Canadian goods, CBC News reported, with the session still leaving room for a deal or a delay.
Earlier reports that a breakthrough had not been reached between President Donald Trump and Canadian Prime Minister Justin Carney had weighed on the Canadian dollar, as markets interpreted the lack of progress as increasing the likelihood that the tariffs would take effect.
The U.S. is threatening to impose 50% tariffs at 12:01 a.m. Wednesday on goods that previously benefited from preferential treatment under the US-Mexico-Canada Agreement, while negotiations continue in Washington with several issues still unresolved, including U.S. tariffs on Canadian vehicles and broader market access disputes.
According to Forexlive’s summary of the developments, a postponement or genuine late-stage breakthrough could lift the Canadian dollar in the short term, while a failure to reach agreement could extend the loonie’s losses in the coming days, absent an unrelated shift in broader drivers such as a U.S.-Iran deal.