The Canadian dollar faces challenges against the US Dollar amid trade tariff concerns voiced by the US government. President Trump’s renewed threats of tariffs on Canadian imports have kept the USD/CAD pair under pressure while economic data begins to surface.

The interplay between these tariff announcements and weaker US data complicates the outlook, leaving many market participants questioning how much higher USD/CAD can move in the near term. This dynamic will likely create volatility as traders digest economic reports ahead.