Canadian Dollar sinks on fresh tariff threats, date changes again

• The Canadian Dollar lost over 0.7% on Thursday.
• US President Donald Trump pivoted tariffs to March 4.
• "Reciprocal tariffs" still coming in April, Canadian PM vows retaliatory tariffs.

The Canadian Dollar (CAD) shed over two-thirds of a percent against the US Dollar (USD) on Thursday, falling for a fifth consecutive session and accelerating losses after US President Donald Trump renewed his threats to impose a 25% tariff on Canadian goods beginning on March 4. According to President Trump, a package of "reciprocal tariffs" is also set to begin on April 2.

Canadian Prime Minister Justin Trudeau has already responded to Donald Trump's wavering reversals on tariffs, vowing that Canada is ready to retaliate against any US tariffs that the White House imposes.

Daily digest market movers: Canadian Dollar recedes as tariff threats resurface

• The Canadian Dollar lost 0.72% on Thursday,  bolstering USD/CAD to 1.440 for the first time since the beginning of February.
• Loonie markets are recoiling in the face of renewed threats of a 25% tariff on Canadian goods from US President Donald Trump.
• US President Donald Trump reiterates March 4 tariffs, still seeking Ukraine deal
• According to President Trump, Canada isn't doing enough to stop the flow of fentanyl into the US, although less than 1% of the drugs seized by US officials were at the US-Canada border.
• US data is also souring, reinforcing fears of a steepening economic slowdown and accelerating inflation pressures across the board.

Canadian Dollar price forecast

The Canadian Dollar's fresh weakness puts USD/CAD on pace for fresh gains, bolstering the Dollar-Loonie pairing into new multi-week highs. After a brief slump sparked by a broad-market wind-down in Greenback bidding, USD/CAD is roaring back to life, chalking in five straight daily gains and pushing back into familiar technical contention territory near 1.4500.

USD/CAD daily chart