Trump calls Canada-US exchange rate 'unacceptable' as tariff war escalates
By Aboki Forex —
US President Donald Trump has called Canada's exchange rate with the United States 'unacceptable'. In a Truth Social post on Sunday, he said the currency imbalance has 'been that way for years'.
What Trump said
Trump wrote: 'Canada's (currency) Dollar imbalance with the U.S. is unacceptable. It has been that way for years, but no longer!' He did not explain what he meant by the post.
Exchange rate picture
The US dollar currently trades at approximately C$1.38. That means C$1 is worth around 72 US cents. The Canadian dollar has historically been weaker than its US counterpart. This makes Canadian exports cheaper for American customers, while American goods become more expensive for Canadians.
Tariff showdown
Trump's post came two days before Canada's tariffs on US products take effect on Tuesday, Sept 8. The tariffs will target 700 American goods. They are in response to Trump's 50 per cent tariffs on Canadian exports, which have been in effect since Aug 22.
On Aug 30, Trump shared a series of posts where he described Canada as 'one of the worst abusers' and claimed he had 'saved' the US automobile business thanks to the tariffs. 'They've been ripping us off for decades and it's going to stop,' that post read.