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Canadian dollar slides as US tariffs on Canadian goods escalate trade war
The US imposed 50% tariffs on $20 billion of Canadian goods after talks collapsed near a Saturday deadline, while Canada said it would retaliate dollar for dollar.
The Canadian dollar dipped after Canada suspended trade negotiations with the United States, as the breakdown fed into a widening trade dispute. The conflict intensified after the US imposed 50% tariffs on $20 billion worth of Canadian goods shortly before a Saturday 12:00 a.m. ET deadline, according to the Guardian Business’ live coverage.
The outlet reported that Canadian Prime Minister Mark Carney rejected what the US proposed, saying last minute US demands would undermine Canada’s sovereignty. Carney also pledged to match the US tariff measures “dollar for dollar,” as the two sides moved further into retaliation.
The piece said the tariffs were first announced on July 20 after the White House alleged that Canada discriminated against American businesses. It cited Canada’s bans on selling US alcohol in eight of its 10 provinces, and all three territories, as the core example used by the White House.
The coverage also linked market moves to the broader trade tension, noting oil prices were falling ahead of planned US sanctions on Iran in the same market backdrop.