US officials signal skepticism over a last-minute trade agreement with Canada ahead of Wednesday’s $20 billion tariff deadline.
The Canadian dollar extended losses after US officials downplayed hopes for a trade deal with Canada before a midnight tariff deadline. Washington indicated no breakthrough had been reached to justify delaying 50% tariffs on $20 billion of Canadian imports set for 12:01 a.m. Wednesday.
Negotiations intensified following a call between President Trump and Canadian Prime Minister Carney, but the White House’s cautious tone suggests tariffs may proceed. Markets remain on edge, with the loonie’s trajectory tied to headlines from the talks.
A deal or delay could spark a short-term rally, while failure may deepen the currency’s decline unless broader USD weakness emerges.