Canadian Dollar Slides as U.S.-Canada Trade Talks Collapse into Tariff War
Written by Damilola Oladoke on August 24, 2026
The Canadian dollar fell Monday after the United States imposed 50% tariffs on about 20 billion dollars of Canadian imports, including dairy, wine, wood products and ceramics, following the breakdown of trade negotiations.
Prime Minister Mark Carney said Washington “asked too much” and vowed “dollar-for-dollar” retaliation starting September 8th on steel, dairy, agricultural equipment, paper and electronics. He declared Canada had been “attacked.”
The loonie dropped 0.45% against the U.S. dollar and also weakened versus the euro, pound and yen.
Analysts warned Canada, as the smaller and more open economy, faces greater risk, with possible recession if the dispute escalates.
