- USD/CAD transactions are traded with negative prejudice for the fourth day in the midst of common USD sales bias.
- Trump’s tariffs are concerns that a US stagnation can trigger bets and weigh on the money.
- The decline in crude oil prices undermines Lonie and gives some support to the main branches.
- Traders also seem to be reluctant to place fresh ways in front of the US/Canadian job reports.
The USD/CAD pair is under pressure for the fourth flat day on Friday and is currently traded in the 1,4070 area, and it decreases 0.15% for the day. Spot prices have approached a four -month low level on Thursday and seem ready for weekly losses, but a combination of different factors requires care for the decline traders.
The US Dollar (USD) has been fighting to benefit from the lowest level of the lowest level since October because of concerns that US President Donald Trump’s tariffs can trigger a stagnation and forcing the Federal Reserve (FED) to continue the ratio -cutting cycle. This led to a decrease in the US Treasury bond returns and kept the USD Bulls on the defense, which continued to pressure down on the USD/Cad pair.
However, the risk of increasing the US-Canada trade war may prevent traders from placing aggressive rise bets around the Canadian dollar (CAD). In fact, Canadian Prime Minister Mark Carney said on Thursday that the retaliation tariffs announced earlier will remain in force and that Canada will apply 25% tariff to all vehicles imported from the USMCA trade agreement imported from the United States.
In the meantime, a very weekly low decrease on Thursday, crude oil prices, is worried that the expanding trade war can disrupt global economic growth and reduce fuel demand. This can further weaken the commodity loonie and contribute to limiting the disadvantage for the USD/CAD pair. In addition, traders may choose to wait for the US/Canadian job report and feed President Jerome Powell’s speech.
Tariffs FAQ
Tariffs are certain goods imports or customs duties received in a product category. Tariffs are designed to help local manufacturers and manufacturers to be more competitive in the market by providing a price advantage compared to similar goods that can be imported. Tariffs are widely used as means of protectionism together with trade barriers and import quotas.
Although tariffs and taxes create government income to finance public goods and services, they have several distinctions. Tariffs are paid at the entrance harbor and taxes are paid during purchasing. While taxes apply to individual taxpayers and enterprises, tariffs are paid by importers.
There are two schools of thought among economists about the use of tariffs. While some claim that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that can increase the higher prices in the long run and encourage the schedules of the Simsekkara for taste.
During the presidential elections in November 2024, Donald Trump clearly stated that he plans to use tariffs to support the US economy and American manufacturers. In 2024, Mexico, China and Canada formed 42% of total US imports. According to the US Census Bureau, Mexico came to the fore as the best exporter with $ 466.6 billion. Therefore, Trump wants to focus on these three countries while applying a tariff. It also plans to use income from tariffs to reduce personal income taxes.
