Stock Market

Story: Canadian Dollar Hits Eight-Week Low as Aluminum and Lumber Tariff Talks Stall

By Sydney TheCMO

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Exporters and Manufacturers Feel the Squeeze. Canadian manufacturers who sell heavily into U.S. markets are probably the most exposed right now.

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Bank of Canada Watched Closely, No Policy Shift Yet. Currency analysts are pointing to the classic safe-haven trade as a big driver here.

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No Timeline, No Resolution in Sight. What's striking about this whole situation is how little clarity exists on basically every…

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The Canadian dollar dropped hard this week. It hit an eight-week low Thursday, trading at 1.35 against the U.S.

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The sticking points aren't new. Tariffs on aluminum and lumber have been a thorn in the side of Canada-U.S.

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It's not just the currency traders sweating this one.

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The agricultural sector is feeling it too. Farmers are watching the situation closely, worried that new tariffs could gut their competitiveness in export markets.

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And it's not just producers. Importers are nervous too. A weaker Canadian dollar means the cost of goods coming into Canada goes up, which eventually filters through to consumer…

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Currency analysts are pointing to the classic safe-haven trade as a big driver here. Investors are moving into U.S. dollars, which pushes the Canadian dollar down further.

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See also: Robinhood Buys WonderFi to Grab Bitbuy, Coinsquare and 300,000 Canadian Accounts

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Speaking of which — there's speculation building that the Bank of Canada might need to adjust monetary policy if conditions keep deteriorating.

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The potential for retaliatory measures from Canada hasn't been ruled out either. That's a whole other layer of complexity.

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Future meetings between Canadian and U.S. officials are apparently anticipated. Dates haven't been confirmed. So the market stays on edge.

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What's striking about this whole situation is how little clarity exists on basically every dimension. When do talks resume? Unclear.

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Financial institutions are watching closely. Policymakers are watching closely. Businesses are watching closely. And yet the watching hasn't translated into anything concrete.

The Currency Analytics

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