The White House intends to impose a 25% tariff on imports from Canada and Mexico next week, regardless of President Trump’s earlier statement indicating a start date in April.
The USDCAD exchange rate experienced a slight increase, reaching 1.4335, after peaking at 1.4366 for the day. The currency pair has surpassed important resistance levels between 1.4268 and 1.42789.
That means Washington is moving faster than expected. The 25% duty on goods from Canada and Mexico will take effect sooner, even though Donald previously mentioned a later timeline. Markets might not have fully adjusted yet.
The rise in USDCAD suggests traders were already positioning for this. Although the pair briefly touched 1.4366, it settled a little lower. That does not mean upward movement is over. It already moved past resistance in the 1.4268–1.4278 range, which could now act as support if the rate pulls back.
We need to watch how Ottawa and Mexico City react. Responses from officials could drive further market shifts. If either country announces countermeasures, traders may adjust quickly. That could mean sharper moves in USDCAD, possibly testing new highs.
At the same time, broader sentiment around the dollar matters. If investors pile into safe-haven assets, that could push the currency even higher, adding to the momentum. On the other hand, any attempt to cool trade tensions might limit further gains, at least temporarily.
Monitoring price action in the coming days will be important. If USDCAD holds above the prior resistance zone, that could reinforce confidence in an extended move. However, a drop below it might suggest a short-term pullback before another attempt higher.
