Canada vows dollar-for-dollar retaliation after US imposes 50% tariffs on $20 billion in imports, escalating trade tensions.
The Canadian dollar dropped 0.55% against the USD after the US imposed 50% tariffs on $20 billion worth of Canadian imports, including dairy, wood, and electronics. The move follows collapsed trade talks over the weekend, with both sides blaming each other for the breakdown.
Negotiators had signaled progress earlier in the week, but talks soured as the US demanded concessions Canada deemed unacceptable. Prime Minister Mark Carney announced retaliatory tariffs starting September 8, targeting US steel, agriculture, and electronics sectors.
The loonie also weakened against the euro, pound, and yen. Analysts warn Canada’s smaller economy faces greater risks but note potential fiscal stimulus to offset damage.