Trump calls Canadian dollar imbalance 'unacceptable' amid trade war

US President Donald Trump on Sunday lambasted the long-standing exchange-rate disparity between the US and Canadian dollars, declaring the currency imbalance "unacceptable" on his Truth Social platform as bilateral trade tensions between Washington and Ottawa continued to escalate without a diplomatic resolution.

Writing on Truth Social, Trump stated: "Canada's (currency) Dollar imbalance with the US is unacceptable." He added that the disparity had persisted for years without correction. "It has been that way for years - but no longer!" the president wrote, though he offered no specifics on what actions Washington might take to address the valuation gap.

The Canadian dollar has remained weaker than its US counterpart for most of the past 15 years, trading at an average of roughly 1.24 Canadian dollars to the greenback. The currency currently stands at approximately 1.38 Canadian dollars per US dollar, meaning one Canadian dollar buys roughly 72 US cents—a valuation gap that makes Canadian exports cheaper for American buyers while increasing the cost of US goods for Canadian consumers.

Trade negotiations collapse

Diplomatic efforts to resolve the trade dispute collapsed after Canadian Prime Minister Mark Carney ordered his negotiating team to return home from Washington. The US subsequently announced plans to impose 50 percent tariffs on key Canadian imports, prompting Carney to vow dollar-for-dollar retaliation effective September 8. Trump has repeatedly criticized the bilateral trade deficit amid the escalating confrontation.

It remains unclear whether the White House intends to pursue specific policy measures targeting the exchange-rate gap. The administration has not elaborated on the president's remarks beyond the social media posts, leaving markets to assess the implications of the threatened trade barriers ahead of the September 8 retaliation deadline.