President Trump on Sunday declared the exchange rate between the U.S. and Canadian dollars an "imbalance" that is "unacceptable," escalating his rhetoric just two days before Ottawa's planned tariffs on a wide array of American products are set to kick in.
"Canada's (currency) Dollar imbalance with the U.S. is unacceptable," Trump wrote on his Truth Social platform. "It has been that way for years — but no longer!"
The Canadian dollar currently trades at roughly 72 U.S. cents, a level that bolsters Canada's position as a net exporter. According to Statistics Canada, the country posted a trade surplus of $769 million in July, and U.S. Census Bureau data show the American trade deficit with Canada exceeded $48 billion last year.
Canadian businesses consistently sell more to their American counterparts than they buy, a dynamic Trump has repeatedly targeted. The president's latest comments come as his administration has already imposed 50 percent tariffs on $27.6 billion worth of Canadian products, which took effect two weeks ago.
In response, Canada's government has scheduled "dollar for dollar" import taxes on certain U.S. goods to begin Tuesday. These retaliatory levies will target steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, according to Canada's Department of Finance. The measures apply to roughly 5 percent of the products American businesses export to Canada, which remains the United States' second-largest trading partner after Mexico.
Trump has also taken aim at Canadian Prime Minister Mark Carney, accusing him of wanting the benefits of U.S. statehood without the responsibilities. During his second term, the president has repeatedly floated the idea of annexing Canada, a stance that has strained bilateral relations.
Later Sunday, Trump broadened his attack, posting a graphic that accused foreign net exporters of using eight "hidden tricks" to gain economic advantage. These include deliberately cheapening their currencies, selling goods below market value, copying American products, and benefiting from export rebates.
The president's aggressive posture on trade has sparked concern among some Republicans, particularly as the beef import gambit draws fire from ranchers and GOP lawmakers. The escalating dispute also comes as the administration faces scrutiny over its broader economic policies, with data showing Trump's policy blitz has hit children hardest. Meanwhile, the president is preparing to address the RNC convention in Dallas amid growing worries about the economy and international tensions, as Iran and the economy weigh on midterm prospects.
