The U.S. is likely to lower tariffs on Canadian steel, aluminum and automobiles as part of a trade framework being devised by the nations
The U.S. is considering a plan to lower tariffs on Canadian steel and aluminum from 50% to 25%, while top-line automobile levies could fall from 25% to 15%.
On Wednesday, the Canadian Dollar (CAD) experienced a decline, trading around 1.3810, a 0.62% decrease for the day. This depreciation was primarily due to Canada's temporary suspension of 50% tariffs against the United States (US), negotiated between US President Donald Trump and Canadian Prime Minister Mark Carney. The reduction in tariff tensions provided some relief to the CAD, which also benefited from rising Oil prices, a sector Canada heavily contributes to.
The USD, on the other hand, struggled to recover from a two-month low, as US economic data indicated a cooling inflation rate and reduced consumer spending, prompting investors to lower expectations of an immediate Federal Reserve (Fed) rate hike. Investors will closely analyze the Federal Open Market Committee (FOMC) Minutes for further insights into the Fed's stance on inflation risks and the US monetary policy.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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