Trump: "U.S.-Canada Dollar Imbalance... No More"

Currency Issue Raised Amid Tariff Dispute with Canada

U.S. President Donald Trump stated on his Truth Social account on the 6th (local time), "The imbalance between the U.S. and Canadian dollars is unacceptable," adding, "It has been this way for years, but it can no longer continue."

The United States and Canada both use currencies called the dollar, but their values differ. Currently, in the foreign exchange market, 1 U.S. dollar is traded at around 1.38 Canadian dollars. Both countries operate under a floating exchange rate system, where currency values are determined by market supply and demand.

President Trump did not specify what he meant by a "dollar imbalance." However, it is interpreted that he was pointing out the lower value of the Canadian dollar compared to the U.S. dollar.

While the Canadian dollar traded at nearly the same value as the U.S. dollar in the early 2010s, it has generally weakened since then. According to the Bank of Canada, the average annual exchange rate rose from 1.2535 Canadian dollars per 1 U.S. dollar in 2021 to 1.3978 Canadian dollars last year. This means that the value of the Canadian dollar declined against the U.S. dollar during the same period.

All else being equal, a weaker Canadian dollar can increase the price competitiveness of Canadian products in the U.S. market. As a result, President Trump may have determined that Canada is benefiting from a currency advantage in bilateral trade. However, he did not assert that the Canadian government is deliberately depreciating its currency or demand specific corrective actions.

This statement comes amid escalating tariff conflicts between the United States and Canada. On August 22, the United States imposed a 50% tariff on approximately 20 billion dollars worth of Canadian products. In response, Canadian Prime Minister Mark Carney announced that retaliatory tariffs of the same scale on U.S. products would be implemented starting the 8th.

This content was produced with the assistance of AI translation services.