U.S. President Donald Trump said the exchange-rate gap between the Canadian dollar and the U.S. dollar is "unacceptable." He did not say what specific exchange-rate level or action he had in mind.
Trump wrote on Truth Social on the 6th (local time), "The dollar imbalance between Canada and the United States is unacceptable," adding, "It has been that way for years, but it will not be anymore."
Trump did not explain what "imbalance" meant.
The Canadian dollar has been weaker than the U.S. dollar for most of the past 15 years. The long-term average exchange rate is about 1.24 Canadian dollars per $1. Since 2015 it has generally moved between 1.20 and 1.45 Canadian dollars per $1.
It is currently about 1.38 Canadian dollars per $1. The value of 1 Canadian dollar is about 72 cents.
A weaker Canadian dollar makes Canadian-made products more price competitive for U.S. consumers, while increasing the price burden of U.S.-made products for Canadian consumers.
Trump has repeatedly taken issue with the trade balance gap between the two countries amid U.S.-Canada trade tensions. Recent trade talks between the two countries are also on hold.
After Canadian Prime Minister Mark Carney ordered the negotiating team to leave Washington and return home, the United States moved to impose a 50% tariff on major Canadian products. Carney said he would respond by taking retaliatory measures matching the U.S. tariffs starting on the 8th.
The White House has not yet provided further explanation of the specific meaning of the remark or any follow-up measures.