US Dollar Strengthens As Loonie Falls; Trump Hikes Tariffs on Canadian Autos After Trade Talks Collapse

02:18 PM EDT, 08/24/2026 (MT Newswires) -- The US dollar strengthened against the Canadian dollar Monday afternoon after trade negotiations between the two countries broke down at the 11th hour. President Trump this morning hiked tariffs on Canadian autos to 50% in an escalation of the trade war. The new tariffs take effect from January 1 next year. Prime Minister Carney over the weekend promised that Canada would retaliate "dollar for dollar". US Treasury Secretary Scott Bessent also unveiled new sanctions against Iran this afternoon. The US dollar was up 0.7% to C$1.3859, on last look. West Texas Intermediate October crude oil futures, the US benchmark, fell 2.6% to $84.79 per barrel. October Brent oil futures, the international benchmark, fell 2.6% to $91.95 a barrel. Meanwhile, Comex gold December futures edged up 0.2% to $4,691.