The Canadian dollar weakened toward 1.37 per US dollar after President Trump’s late-week proclamation of a 35% tariff on all non-USMCA Canadian goods, set to take effect August 1st, reignited concerns over Canada’s export access and magnified trade-policy uncertainty. By invoking Ottawa’s retaliatory levies and what he characterized as a lack of “cooperative spirit,” Trump’s escalation piles fresh pressure on Canada to clinch a new agreement before the deadline, adding to the existing 50% duties on Canadian steel and aluminium - where Canada remains America’s top supplier. However, Canada’s domestic economy offered a counterpoint: June’s labour report surprised decisively, with 83,100 jobs created and the unemployment rate dipping to 6.9%, a showing that has tempered market odds for a Bank of Canada rate cut at its July 30th meeting and provided the loonie with an undercurrent of support despite the trade-war headwinds.