US President Donald Trump has criticised what he described as an exchange-rate gap between the Canadian and US dollars, calling the "imbalance" unacceptable.
"Canada's (currency) Dollar imbalance with the US is unacceptable," Trump wrote on his social media platform Truth Social on Sunday. "It has been that way for years - but no longer!"
Trump did not elaborate on what he meant by the remark.
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For the majority of the previous 15 years, the value of the Canadian dollar has historically been lower than that of the US dollar. Its long-term average is roughly 1.24 Canadian dollars to $1.
Since 2015, the Canadian dollar has primarily fluctuated between 1.20 and 1.45 US dollars. Only during a portion of the commodity boom from 2007 to 2012, when the Canadian dollar was stronger than the US dollar, did it achieve or surpass parity, as reported by TRT World.
Dollar-for-Dollar Retaliation
The US dollar currently trades at around 1.38 Canadian dollars, meaning one Canadian dollar is worth roughly 72 US cents.
A weaker Canadian dollar makes Canadian goods cheaper for US buyers while making US goods more expensive for Canadian consumers. Trump has repeatedly criticised the trade gap with Canada amid an ongoing trade war between the two neighbouring countries.
Trade talks between Canada and the US collapsed after Canadian Prime Minister Mark Carney ordered negotiators to return home from Washington.
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The US subsequently moved to impose 50% tariffs on key Canadian goods. Carney has vowed to retaliate dollar-for-dollar, starting September 8.
It's still unclear if Trump intends to address the currency disparity. The president's comments have not been further explained by the White House.
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