Where Is the Canadian Dollar Headed Amid Tariff, Interest Rate Uncertainty?
News Analysis While the Canadian dollar has enjoyed a two-month rise, additional U.S. tariffs have halted its momentum and could cause it to slide further. The United States imposed new 50 percent tariffs on Canada on Aug. 22 after trade talks collapsed the day before. The country then on Aug. 24 threatened more steep tariffs [...]
TL;DR
- The Canadian dollar's recent upward trend has been interrupted.
- New U.S. tariffs of 50% were imposed on Canada on August 22 following collapsed trade talks.
- The U.S. has threatened additional steep tariffs on Canadian automobiles and steel starting January 1, 2027.
- These tariffs, along with potential U.S. interest rate hikes, are expected to pressure the Canadian dollar downwards.
- Economists predict that the loonie's value will not fall dramatically.