Trump Says the Loonie's Been Too Cheap for Too Long, and He's Done With It

President Donald Trump took to Truth Social on Sunday to vent about the exchange rate between the U.S. and Canadian dollars, calling the gap "unacceptable" and signaling he's not going to let it slide any longer. The comments come just two days before Canada's next round of retaliatory tariffs on American goods is set to take effect.

Imbalance Is 'Unacceptable'

"Canada's (currency) Dollar imbalance with the U.S. is unacceptable," Trump wrote. "It has been that way for years, but no longer!"

Right now, one Canadian dollar buys about 72 U.S. cents, a gap that has been a persistent thorn in the president's side.

Canada's Retaliatory Tariffs Take Effect Tuesday

Starting Sept. 8, Canada will slap tariffs on roughly $20 billion worth of U.S. goods. That's about two weeks after Trump's own 50% tariffs on Canadian products went into effect.

Canadian Finance Minister François-Philippe Champagne has laid out a sliding scale of 15%, 25%, and 50% across sectors like steel, aluminum, furniture, clothing, appliances, and electronics.

The targeted goods make up about 6% of the $333.6 billion in U.S. goods exported to Canada last year. For context, Canada posted a trade surplus of $769 million in July, according to Statistics Canada, while the U.S. ran a goods trade deficit with Canada of more than $48 billion last year, per the U.S. Census Bureau.

Canada is either the largest or second-largest destination for American exports in most of the targeted sectors, according to U.S. trade data cited by CNN.

Broader Standoff With Carney

This isn't just about exchange rates. Trump has repeatedly taken aim at Canadian Prime Minister Mark Carney throughout the dispute, at one point 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%. Trump has also separately threatened to raise tariffs on Canadian vehicles, auto parts, and steel to 50% starting January 2027.

On Thursday, Trump warned 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."

But Carney remains open to a deal, saying a mutually beneficial agreement with the U.S. is still possible and that 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 MarketDash editors.

Photo: IAB Studio / Shutterstock

Stock Market News

Get Market Alerts

Imbalance Is 'Unacceptable'

Canada's Retaliatory Tariffs Take Effect Tuesday

Broader Standoff With Carney

More News

Iran's 'Faster, Heavier' Threat Sends Brent Past $96 as Sanctions Bite

Iran Nuclear Deal Looks Unlikely, Says Energy Secretary as Conflict Grinds On