US/Canada
Trade Talks Collapse
Carney Wovs to
Retaliate
Dollar-for-Dollar
CAD underperformed on the day, emerging as the clear G10 laggard after US-Canada trade discussions collapsed unexpectedly. Canadian PM Carney vowed to retaliate with dollar-for-dollar 50% tariffs on US goods from September 8th, sharply escalating the trade dispute and increasing concerns around the economic impact on Canada. Markets are now facing the prospect of a prolonged trade war, with Canada warning the dispute could extend beyond the US midterms. The threat of sustained 50% tariffs and the deterioration in the US-Canada trade relationship weighed heavily on CAD
