The Canadian dollar slid Monday morning after trade negotiations between Ottawa and Washington collapsed, which could raise costs for a wide range of imported products and threaten Canada’s economic growth.
The Canadian dollar fell 0.55% against the U.S. dollar and dipped against the euro, British pound, and Japanese yen.
The slide follows the U.S. imposing 50% tariffs on about $20 billion in Canadian imports on Saturday. The affected goods include dairy, wine, wood products, furniture, cement, ceramics, and a slew of other categories.
Canadian Prime Minister Mark Carney announced he will respond with dollar-for-dollar tariffs on Sept. 8, focusing on industries like steel, dairy, agricultural equipment, paper, and electronics. He stated that the specifics will be disclosed “in the coming days.” Carney said on Saturday that the U.S. had “asked too much and offered too little.”
“We were not prepared to compromise Canada’s sovereignty or undermine our key industries,” he said.
When a reporter questioned why Canada seemed to be entering a trade war, Carney responded: “Because we got attacked. You’re at war when you get attacked. We got attacked.”
Negotiators had worked tirelessly all week to reach an agreement, and officials indicated an impending deal. However, by the weekend, the tone shifted as both sides accused each other of not only failing to close the deal but also of engaging in unfair trade practices.
Trump said in a post on Truth Social on Sunday: “Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!! President DJT”
Despite the potential economic impact, Carney’s position was generally well received in Canada.
By CEO NA Editorial Staff
