The Canadian dollar weakened to its lowest level in a week as traders are doubtful that Ottawa can reach a new trade deal with the US. Trade negotiations hit a roadblock midweek after President Donald Trump weighed in on the talks and revealed he rejected a meeting with Prime Minister Justin Trudeau. The escalating trade tensions could lead to Canada sitting on the sidelines of a US-Mexico bilateral agreement.
Speaking at a news conference in New York for the United Nations General Assembly, President Trump slammed Canadaâs negotiating efforts for a new North American Free Trade Agreement (NAFTA), complaining about the representatives trying to reach a new trade pact.
We’re very unhappy with the negotiations and the negotiating style of Canada. We don’t like their representative very much.
This confirms earlier reports that US Trade Representative Robert Lighthizer does not like Foreign Affairs Minister Chrystia Freeland.
When pressed if Trump snubbed Trudeau, the president replied that he did.
Yeah, I did, because his tariffs are too high and he doesn’t seem to want to move and I’ve told him forget about it and frankly we’re thinking about just taxing cars coming in from Canada. That’s the mother lode, that’s the big one.
But the Prime Ministerâs Office (PMO) denied that any such âmeeting was requested.â
Should a new trade pact fail to be reached, the Canadian economy could tank because it sends 75% of its exports south of the border.
Under the supply management system, Canada maintains a 270% tax on milk, a 245% levy on cheese, and a 298% tariff on butter. These taxes are aimed at protecting the domestic dairy industry and keeping out foreign competition. This has caused Canadian consumers to pay as much as 40% more for a wide range of items.
Rising energy prices could not help the loonie on Thursday. November West Texas Intermediate (WTI) crude oil futures rose $0.33, or 0.46%, to $71.90 per barrel on the New York Mercantile Exchange.
Investors will pay attention to Bank of Canada (BOC) Governor Stephen Polozâs remarks on Thursday and Canadaâs gross domestic product (GDP) numbers on Friday.
The USD/CAD currency pair surged 0.31% to 1.3059, from an opening of 1.3020, at 15:24 GMT on Thursday. The EUR/CAD declined 0.31% to 1.5239, from an opening of 1.5285.
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