USD/CAD extends upside above 1.4300 as trade fears loom

• USD/CAD gains ground to around 1.4315 in Tuesday's late American session. 
• Fresh tariff concerns and lower crude oil prices drag the Canadian Dollar lower. 
• The US CB Consumer Confidence Index fell to 98.3 in February. 

The USD/CAD pair extends the rally to near 1.4315 during the late American session on Tuesday. The Canadian Dollar (CAD) amid the fears that US trade tariffs will be implemented. Investors will take more cues from the US New Home Sales and Fedspeak later on Wednesday. 

US President Donald Trump said Monday that sweeping US tariffs on imports from Canada and Mexico "will go forward" when a month-long delay on their implementation expires next week. Trump further stated that the US does not need Canadian Crude Oil or lumber products, a statement that runs against a hard wall of decades of trade history. Fresh tariff concerns exert some selling pressure on the Canadian Dollar (CAD) and create a tailwind for the pair. 

Additionally, a fall in crude oil prices undermines the commodity-linked Loonie. It's worth noting that Canada is the largest oil exporter to the United States (US), and lower crude oil prices tend to have a negative impact on the CAD value.

On the other hand, US consumer confidence fell the most since August 2021, prompting traders to raise their bets on Federal Reserve (Fed) rate cuts this year. This, in turn, could weigh on the Greenback against the CAD. The US Consumer Confidence declined to 98.3 versus 105.3 prior, according to the Conference Board.