Trump’s Tariff Threat: USD/CAD Hits Three-Week High

As we reported on 3 February, Trump’s tariffs pushed USD/CAD to a 22-year high.

However, a one-month tariff delay led to a sharp drop, sending USD/CAD to its 2025 low near 1.41550. As the end of the delay approaches, the pair has been climbing again since mid-February (as shown by the arrow).

Yesterday, President Trump confirmed that his proposed 25% tariffs on Mexican and Canadian goods will take effect on 4 March. This dashed hopes for another delay and triggered a breakout above the 1.43600 resistance level.

Technical Analysis of USD/CAD

Above current levels, key resistance lies at 1.44600, which has held firm since mid-December. However, drastic measures from Trump’s administration could drive further price movement within the blue-marked channel.

Expect volatility spikes ahead of Canada’s GDP release, scheduled for today at 16:30 GMT+3.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.