President Donald Trump said Sunday the exchange rate imbalance between the U.S. and Canadian dollar is “unacceptable,” two days before a new round of Canadian tariffs on American goods takes effect.
Imbalance is ‘Unacceptable’
“Canada’s (currency) Dollar imbalance with the U.S. is unacceptable,” Trump said in a post on Truth Social. “It has been that way for years, but no longer!”
One Canadian dollar currently buys about 72 U.S. cents.
Canada’s Retaliatory Tariffs Take Effect Tuesday
Canada’s retaliatory tariffs on roughly $20 billion of U.S. goods take effect Sept. 8, about two weeks after Trump’s own 50% tariffs on Canadian products took hold.
Canadian Finance Minister François-Philippe Champagne has said the measures apply a sliding scale of 15%, 25%, and 50% across sectors including steel, aluminum, furniture, clothing, appliances, and electronics.
The targeted goods represent about 6% of the $333.6 billion in U.S. goods exported to Canada last year.
In July, Canada posted a trade surplus of $769 million, according to Statistics Canada, while the U.S. ran a goods trade deficit with Canada of more than $48 billion last year, according to the U.S. Census Bureau.
Canada ranked as either the largest or second-largest destination for American exports across most of the targeted sectors, according to U.S. trade data cited by CNN.
Broader Standoff With Carney
Trump has repeatedly criticized Canadian Prime Minister Mark Carney throughout the trade dispute, previously saying Canada wants “the benefits of being a state, without being one.”
Trade talks between the two countries collapsed last month after Commerce Secretary Howard Lutnick pushed back against a proposed cut in auto tariffs from 25% to 15%, and Trump has separately threatened to raise tariffs on Canadian vehicles, auto parts and steel to 50% starting January 2027.
Trump warned Thursday that Canadian politicians making him “the enemy” could trigger a collapse of Canada’s economy, calling the fallout “very bad” and “worse than anything that has ever happened to a Canadian Politician.”
However, Carney said a mutually beneficial deal with the U.S. remains possible, and Ottawa is ready to negotiate whenever Washington is, according to CNBC.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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