Citing US President Donald Trump, the Financial Times (FT) reported on Friday that the president has ended trade negotiations with Canada, escalating tensions between the two neighboring countries.
According to the report, Trump said he had terminated the discussions “out of anger” over an anti-tariff advertising campaign launched by the province of Ontario, which he described as “egregious behavior.” The decision has sparked renewed uncertainty over North American trade relations.
In a Truth Social post late Thursday, Trump wrote: “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE USA. Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
Market reaction
The announcement weighed on the Canadian dollar (CAD), which weakened against the US dollar (USD) in early trading. As of writing, USD/CAD was up 0.11% on the day, trading near 1.4005, as investors reacted to the heightened trade uncertainty.
