Canadian negotiators aim to present a trade agreement to Trump by August 19 to avoid 50% tariffs on key exports.
The USD/CAD pair retreated slightly as Canadian and U.S. trade officials intensified negotiations to secure a deal before an August 19 tariff deadline. Reports indicate Canada’s Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer are targeting a Monday presentation to President Trump, aiming to avert 50% tariffs on Canadian steel, aluminum, lumber, and autos.
Canada seeks to reduce or eliminate tariffs, which have severely impacted its steel industry. Earlier reports suggested a mix of tariff cuts and quotas, but recent discussions now include lumber, a new addition. The August 19 deadline looms, with similar tariffs set to hit other U.S. trading partners.
Market focus remains on the potential deal’s impact on the loonie, with USD/CAD approaching a 50% retracement of its May-June rally. A successful agreement could provide significant support for the Canadian dollar, though uncertainty persists given Trump’s unpredictable trade policies.