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Canadian dollar rebounds modestly after US delays 50% tariffs

The three-day postponement of 50% US tariffs on selected Canadian goods sparked only muted CAD gains as traders questioned whether the deal will hold.

Reported · Written up by our desk · Major Pairs

FXStreet, citing Commerzbank analyst Michael Pfister, said the Canadian dollar saw a modest rebound after the US delayed new 50% tariffs on selected Canadian goods by three days while an agreement is reportedly close.

Pfister noted the tariffs were due to take effect that day, but the US President postponed them to give more time to finalize the deal, leading to immediate relief in CAD.

Even with the postponement, the article said market participants remained unsure the agreement would proceed or what form it would take, keeping the currency move limited.

Commerzbank highlighted that for a stronger CAD recovery, the new accord would need to prove durable, especially given that the USMCA was approved by the prior US President but was later criticized, with attention likely to shift to the deal's robustness in the weeks ahead.

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