US President Donald Trump has criticised what he described as an “unacceptable” imbalance involving the Canadian dollar and the United States, saying the situation has persisted for years but would no longer be tolerated.
In a post on Truth Social, Trump wrote: “Canada’s (currency) Dollar imbalance with the U.S. is unacceptable. It has been that way for years - but no longer!”
Trump did not provide further details in the post about what he meant by the “currency dollar imbalance” or outline any immediate policy measures.
The comments come amid continued tensions between Washington and Ottawa over trade tariffs. Trump has repeatedly raised concerns about the US trade relationship with Canada and has pushed for measures aimed at reducing what he considers unfair economic arrangements.
The Canadian dollar is closely tied to the US economy because the United States is Canada’s largest trading partner. Movements in the Canadian currency can be influenced by interest-rate differences, commodity prices, trade flows and economic expectations in both countries.
Canada hits back with tariffs on $20 billion of US goods
Trump's comments come after Canada has imposed retaliatory tariffs on about $20 billion worth of US goods, escalating a trade conflict with the United States that threatens to disrupt one of the world's largest trading relationships.
The new measures, which take effect September 8, target hundreds of American products, including steel, aluminum, dairy, appliances, farm equipment, furniture, clothing, seafood, cosmetics and toilet paper. Tariff rates range from 15% to 50%, with some duties doubling from the existing 25%.
Canadian Prime Minister Mark Carney has defended the retaliation, arguing that accepting Washington's demands would have placed Canada's major industries at risk.
Canadian Finance Minister François-Philippe Champagne said Ottawa did not choose the confrontation but had to respond after economic ties with the US were used as a weapon.
Industry Minister Mélanie Joly also urged Canadians to buy domestic products, describing the campaign as a "movement of resistance" that could help protect Canadian jobs.
Canadian officials said the new tariffs were primarily designed to match US measures and pressure American industries and supply chains rather than target specific states for political reasons.
Trump tells Canada to 'fall in line'
US President Donald Trump has responded aggressively to Canada's retaliation.
Trump told Canadian leaders to "fall in line" and warned that Ottawa could face consequences "far WORSE" than the existing tariffs. He has also threatened additional 50% tariffs on Canadian vehicles, auto parts and steel.
Trump has separately threatened to rename Lake Ontario "Lake America" amid his dispute with Ontario Premier Doug Ford, following his earlier move to rename the Gulf of Mexico the Gulf of America.
Tariffs target hundreds of US products
Canada's new tariffs will apply to more than 700 products worth about C$27.5 billion ($19.8 billion) in annual US shipments to Canada.
Steel and aluminum products will account for a large share of the measures. Some steel and aluminum, furniture and clothing products will face 50% tariffs.
Other products, including appliances, dairy products such as cheese, fish and seafood, and certain metal derivatives, will face 25% tariffs.
Canada's existing countertariffs on US automobiles will remain in place.
Ottawa has also announced a C$7.5 billion ($5.4 billion) support package for workers and businesses affected by the trade dispute.
