Trump’s steel tariff prompts Canada to scrap bridge ceremony, sinking the loonie and raising trade war fears.
The Trump administration imposed a 25% tariff on Canadian steel, prompting Canada to cancel the Gordie Howe Bridge ceremony. The move signals strained trade relations and weighs on the Canadian dollar, with USDCAD rising 0.3% on the day.
The 25% tariff on Canadian steel reduces demand for the loonie as exports become less competitive, pushing USDCAD higher.
If Canada retaliates with tariffs on US goods, USDCAD could climb further, potentially testing 1.35; a pause in trade escalation could cap gains.
Immediate resistance sits at 1.33, with support at 1.32; a break above 1.33 targets 1.34.
The US imposed a 25% tariff on Canadian steel, prompting Ottawa to cancel the ribbon-cutting for the new Gordie Howe International Bridge. The diplomatic snub threatens US-Canada trade relations and weighed on the Canadian dollar, which fell 0.3% against the greenback. Analysts see the tariff escalation as a setback for the USMCA and a negative for cross-border manufacturing supply chains.
Canada canceled the ceremony in protest of the Trump administration's 25% tariff on Canadian steel, viewing it as an unfriendly act that undermines bilateral relations.
The Gordie Howe International Bridge is a new crossing connecting Detroit, Michigan, and Windsor, Ontario, aimed at easing trade flow between the US and Canada, handling about 25% of bilateral merchandise trade.
The tariff reduces demand for Canadian exports, weakening the loonie; the USDCAD rose 0.3% as investors priced in a slower Canadian economy.