USD/CAD trades with mild gains above 1.3650 as Trump vows 50% tariff on copper

• USD/CAD posts modest gains around 1.3665 in Wednesday's early Asian session. 
• Trump said he will impose a 50% tariff on copper imports. 
• Investors brace for the FOMC Minutes later on Wednesday. 

The USD/CAD pair trades with mild gains near 1.3665 during the early Asian session on Wednesday. The Canadian Dollar (CAD) softens against the Greenback after US President Donald Trump reignited concerns following tariffs on Japan and South Korea. The release of the FOMC Minutes will take center stage later on Wednesday. 

Trump said that he will announce a 50% tariff on imported copper on Tuesday and suggested that steeper sector-specific levies are forthcoming. Additionally, the US President also said he would soon announce tariffs "at a very, very high rate, like 200%," on pharmaceutical imports.

US tariff uncertainty and potential new tariffs on copper imports weigh on the Loonie as Canada is a major producer of copper. The country has already been hit with hefty US tariffs on autos, steel and aluminum but has escaped sweeping US duties imposed in April. "There's a little bit of steam (coming) out of the loonie, primarily driven by risk aversion, as these tariffs have basically come back to the forefront," said Rahim Madhavji, president at KnightsbridgeFX.com.

Nonetheless, Canadian Prime Minister Mark Carney and Trump were scheduled to reach a form of trade agreement by July 21. Any positive developments surrounding the US-Canada trade agreement might help limit the CAD's losses. 

The minutes from the June Federal Reserve meeting might offer some hints about how Federal Reserve (Fed) officials view the US economy and interest rate path. Any dovish comments from Fed policymakers could drag the Greenback lower against the CAD.