ING’s Francesco Pesole highlights escalating US-Canada trade tensions, with new US tariffs on Canadian autos and parts announced for early next year. He notes both sides remain entrenched in conflict territory and argues the recent rebound in USD/CAD has room to extend beyond 1.390, as trade risks and broader Dollar dynamics continue to influence the pair.

US-Canada dispute underpins USD/CAD

“On Canada, the situation is still in the escalation phase. Trump has announced 50% tariffs on Canadian autos and parts from 1 January.”

“The US-Canada dispute could incidentally amplify that negative dollar reaction.”

“The distant implementation date suggests some caution around disrupting the auto sector ahead of the midterms, while also leaving ample room for negotiations.”

“At the same time, both sides remain firmly in trade-conflict territory.”

“We think the rebound in USD/CAD can extend beyond 1.390.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)


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Shin John
Shin JohnYtv Market News
Share-market news writer and analyst with deep experience covering equities, commodities, forex, and cryptocurrencies for readers in the USA, UK, Canada, and Australia. Ytv Market News delivers timely market updates, practical trading insights, and clear explanations of macro and company-level catalysts that move prices. Combines on-the-ground financial reporting with technical analysis, using concise charts and actionable ideas to help investors and traders make smarter decisions.