- The Canadian dollar lost more than 0.7% on Thursday.
- US President Donald Trump moved the tariffs to March 4.
- “Reciprocal tariffs” Still to come in April, Canadian Prime Minister promises retaliation tariffs.
The Canadian dollar (CAD) lost more than two thirds of one percent against the US dollar (USD) on Thursday, falling for a fifth consecutive session and accelerating the losses after the US president Donald Trump renews his threats to impose a 25% tariff on Canadian products from March 4. According to President Trump, a package of “reciprocal tariffs” will also begin on April 2.
Canadian Prime Minister Justin Trudeau has already responded to Donald Trump’s hesitations about tariffs, promising that Canada is ready to retal against any US Tariff that imposes the White House.
What moves the market today: the Canadian dollar goes back as the tariff threats resurface
- The Canadian dollar lost 0.72% on Thursday, promoting the USD/CAD at 1,440 for the first time since the beginning of February.
- The CAD markets are going back to the renewed threats of a 25% tariff to Canadian products by the US president Donald Trump.
- US President Donald Trump reiterates the tariffs of March 4, still looking for an agreement with Ukraine
- According to President Trump, Canada is not doing enough to stop the flow of fentanyl towards the US, although less than 1% of drugs seized by US officials were at the border between the US and Canada.
- The US data is also worsening, reinforcing the fears of a pronounced economic deceleration and increasing inflation pressures in all areas.
Prognosis of the price of the Canadian dollar
The new weakness of the Canadian dollar puts the USD/CAD on the way to new profits, promoting the dollar-cad to new maximums of several weeks. After a brief fall caused by a general market fading in the dollar offer, the USD/CAD is coming back to life, registering five consecutive daily profits and pushing again a territory of family technical containment about 1,4500.
USD/CAD DAILY GRAPH
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
