Canadian Dollar tumbled broadly after US President Donald Trump announced a significant tariff escalation on Canadian steel and aluminum imports.
In a Truth Social post, Trump said he instructed the Commerce Secretary to impose an additional 25% tariff on these products, raising the total tariff to 50%.
The new measure, set to take effect Wednesday morning, is being framed as a response to Ontario’s 25% tariff on electricity exports to the US.
Trump also demanded that Canada immediately eliminate its long-standing tariffs of 250% to 390% on various US dairy products, calling them “outrageous.”
The tariff threat didn’t stop there. Trump warned that if Canada does not remove other tariffs he deems excessive, the US will “substantially increase” tariffs on Canadian automobile imports starting April 2nd.
Overall outlook in USD/CAD is unchanged that it’s still extending the corrective pattern from 1.4791 high. But current upside acceleration argues that rise from 1.4150 might be the second leg of the pattern. Break of 1.4541 will target 100% projection of 1.4150 to 1.4541 from 1.4238 at 1.4629 and above. Neverthless, break of 1.4392 minor support will bring deeper fall back to 1.4238 and below.
