US dollar dips to C$1.3877 as Trump hits pause on 50% Canadian tariffs

President Trump paused a sweeping 50% tariff on Canadian imports just before it was set to take effect, sending the US dollar down 0.2% against the Canadian dollar to C$1.3877. The duties would have hit dairy, alcohol, electronics, apparel, and building materials, covering a wide swath of cross-border commerce. The tariff pause playbook The proposed August tariffs were justified by the White House as a response to what it called “discriminatory treatment” by Canada of US exports. Dairy, alcohol, and automotive sectors were singled out as the main grievances. But instead of following through, the administration opted for another delay. Similar pauses happened in February 2025, when a 30-day delay was announced, and again in April 2025, when a broader 90-day pause was implemented. USMCA caught in the crossfire Underneath all the tariff theater sits the United States-Mexico-Canada Agreement, the trade deal that replaced NAFTA and is supposed to guarantee tariff-free access for most goods flowing between the three countries. Steel and aluminum duties have been a persistent exception, creating friction even during calmer periods. But a 50% blanket duty on consumer goods and building mat...