Canada is a set to remove retaliatory tariffs on many US products | investingLive
- Canada is the set to remove retaliatory tariffs on many US products.
- To apply tariff exemption on many goods under USMCA
Standard Tariff (non‑USMCA goods): As of August 1, 2025, the U.S. raised tariffs on Canadian goods not covered under the US-Mexico-Canada Agreement (USMCA) from 25% to 35%.
USMCA‑Compliant Goods: The vast majority of Canadian exports—such as nearly all energy exports and other USMCA‑compliant items—remain duty‑free. Over 85% of Canada–U.S. trade is still exempt from these tariffs.
Sector-Specific Tariffs:
-
Steel & Aluminum: Subject to 50% tariffs.
-
Automobiles & Auto Parts: A separate 25% tariff applies to non‑USMCA compliant vehicles and parts.
The USDCAD has moved lower and looks to test a swing area between 1.3812 and 1.38315. Below that is a rising trendline and the rising 100-bar moving average on the 4 hour chart near 1.38025.
Ironically – or as luck would have it – the high price today stalled right near the target at the 38.2% retracement of the move down from the March high.
Yesterday I wrote
- The USDCAD is pushing higher, entering a key swing area between 1.3891 and 1.3904. A break above this zone would open the door toward the 38.2% retracement of the decline from the March 4 high at 1.39229—a critical level, since reclaiming the 38.2% retracement is the minimum threshold for buyers to prove they are regaining control after a strong downtrend. The price decline from the March 4 high was trend like.
The high price today reached 1.3924.
Moving below the 100 bar moving average at 1.38025 would open the door for the other moving averages on the downside including the 100-day with moving average at 1.3768, and the 200 bar moving average on the 4 hour chart at 1.3749.