Canadian dollar optimism is eroding, as Sunday’s deadline for US-Canada trade talks approaches. US President Donald Trump confirmed his discontent, refusing Canadian Prime Minister Justin Trudeau’s request for a meeting. Trump restated his willingness to implement tough duties on Canadian cars, as negotiations are stalling on multiple topics. As early as tomorrow the Trump administration will publish its bilateral trade agreement with Mexico, putting a trilateral agreement in jeopardy. For now, the loonie is expected to ease against the greenback, trading above 1.3050 and expected to rise as the deadline nears.
US trade representative Robert Lighthizer mentioned that trade talks with Canada are expected to continue after the September deadline. This could lead to two bilateral trade deals rather than one trilateral one. The US-Mexico pact is expected to be signed by Mexican president Enrique Pena Nieto, who leaves office on 1 December of this year. America and Canada continue to be split by divergences on Canadian dairy products, US steel and aluminium tariffs, Canadian media content safeguarding and the broadening of trade dispute settlement.
By Vincent Mivelaz
