Canadian dollar weakens as US trade policy uncertainty weighs on markets

The loonie edged lower today as investors reacted to renewed uncertainty over American trade tariffs. Markets are now awaiting key domestic GDP data due this Friday.

The Canadian dollar CACA edged lower against the United States USUS dollar on Monday after the U.S. Supreme Court struck down emergency tariffs previously implemented by President Donald Trump. The decision, finalized on February 23, 2026, immediately increased uncertainty regarding future U.S. tariff policy, weighing on investor sentiment and affecting markets ranging from equity indexes to currency positioning. This development comes as market participants prepare for the release of Canadian fourth-quarter GDP data due later in the week.
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015. REUTERS/Mark Blinch
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, January 23, 2015. REUTERS/Mark Blinch
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