Trump says he will hit Canada with reciprocal tariffs if Canada retaliates

Here’s Trump’s latest on Truth Social:

Please explain to Governor Trudeau, of Canada, that when he puts on a
Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately
increase by a like amount!

That’s great. The fear in a trade war is always unlimited escalation.

Markets have taken more of a constructive view in the past few hours but we will see how this lands. USD/CAD briefly touched a session high at 1.4543, up about 20 pips but has been somewhat reeled in.

This article was written by Adam Button at www.forexlive.com.