Trump criticizes Canadian dollar imbalance as trade tensions intensify

US President Donald Trump has turned his criticism of Canada’s trade relationship toward the countries’ currencies, calling the gap between the Canadian and US dollars “unacceptable.”

“Canada’s (currency) Dollar imbalance with the US is unacceptable,” Trump wrote on Truth Social. “It has been that way for years, but no longer!” He did not explain what he meant or indicate whether he planned to take action. The White House offered no further details.

The Canadian dollar has generally remained weaker than its US counterpart for most of the past 15 years. Its long-term average has been about C$1.24 to the US dollar. Since 2015, it has mostly traded between C$1.20 and C$1.45, reaching or exceeding parity only during part of the 2007-2012 commodity boom.

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Canada’s (currency) Dollar imbalance with the US is unacceptable.

The US dollar currently trades at around C$1.38, meaning one Canadian dollar is worth roughly 72 US cents. A weaker Canadian dollar makes Canadian goods cheaper for US buyers while making US products more expensive for Canadian consumers. Trump has repeatedly criticized the trade gap with Canada as the two neighbors pursue a trade war.

Trade talks collapsed after Canadian Prime Minister Mark Carney ordered negotiators to return from Washington. The United States then moved to impose 50% tariffs on key Canadian goods, and Carney vowed dollar-for-dollar retaliation beginning Sept. 8.

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It has been that way for years, but no longer!