- Full report here
Canadian and US negotiators are expected to meet again as both sides make a final push to reach an agreement before US’s midnight tariff deadline, according to CBC News. The latest development adds some hope that diplomacy remains active, but it comes against a backdrop of considerable uncertainty.
Earlier in the session, FOX Business White House correspondent Edward Lawrence reported that a White House official said Trump and Carney had discussed the planned retaliatory tariffs but failed to reach a resolution that would prompt the president to delay them.
That report weighed on the Canadian dollar, as markets interpreted the lack of a breakthrough as a sign that the tariffs were still likely to take effect. The latest news suggests that it might not be over yet. Canadian trade officials have been in Washington negotiating with US representatives, while several key issues remain unresolved, including US tariffs on Canadian vehicles and broader disputes over market access.
The US is threatening to impose 50% tariffs on around $20 billion of Canadian imports, with the measures scheduled to take effect at 12:01 a.m. Wednesday. The tariffs would apply to goods that had previously benefited from preferential treatment under the US-Mexico-Canada Agreement.
If there’s a genuine last-minute breakthrough or even a postponement, the CAD could rally in the short-term. If talks fail, on the other hand, we can expect the loonie to extend losses in the coming days, unless a surprising US-Iran deal weighs on the US dollar.
This article was written by Giuseppe Dellamotta at investinglive.com.