Canadian Dollar Pressured by New US Tariffs – Commerzbank

Volkmar Baur at Commerzbank highlights that the United States has imposed 50% tariffs on selected Canadian dairy, alcohol, and automobile products under Section 338 of the Tariff Act of 1930. These measures effectively remove preferential treatment granted under the United States–Mexico–Canada Agreement (USMCA).

The trade dispute escalation is seen as a bearish factor for the Canadian dollar, as it risks disrupting bilateral trade flows and adding uncertainty to Canada's economic outlook. Commerzbank notes that the new tariffs signal a more aggressive US stance, which could further pressure CAD in the near term.