Canadian Dollar: Trade conflict weighs on Loonie - Commerzbank | FXStreet

Commerzbank’s Michael Pfister says the latest breakdown in US-Canada trade talks and Ottawa’s plan for retaliatory tariffs point to a potentially protracted trade conflict. He argues Canada appears increasingly unwilling to accept new US demands, which could weigh on Canadian sentiment indicators and weaken a tentative short-term recovery. Pfister notes that political pressure is building in the US ahead of mid-term elections, meaning Canada’s tougher stance could still help later, despite near-term damage. He adds that previous negotiations have repeatedly ended abruptly over new demands introduced at short notice. The piece also cites retaliation tariffs due to come into force on 8 September.