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• USD/CAD holds steady around 1.4320 in Monday’s late American session. 
• Trump said he may give some countries breaks on reciprocal tariffs.
• Higher Crude Oil prices might boost the commodity-linked Loonie. 

The USD/CAD pair trades on a flat note near 1.4320 during the late American session on Tuesday. The pair consolidates in a narrow trading range amid further confusion about US President Donald Trump's plans for the tariff announcement scheduled for April 2. The US Conference Board’s Consumer Confidence gauge, New Home Sales and the Richmond Fed Manufacturing Index will be published later on Tuesday. 

Trump said late Monday that he will announce tariffs on automobile imports in the coming days and indicated that some countries will receive breaks from reciprocal tariffs on April 2. Trump signaled trading partners would receive possible exemptions or reductions.

However, Trump also stated that he planned to proceed with sector-specific tariffs on lumber and semiconductors and repeated his threat to impose duties on pharmaceutical drugs in “the very near future.” Investors remain concerned over a potential rise in inflation and recession ahead of Trump’s reciprocal tariffs. This, in turn, might exert some selling pressure on the Greenback against the Canadian Dollar (CAD). 

Meanwhile, a rise in Crude Oil prices could boost the commodity-linked Loonie and create a headwind for USD/CAD. It’s worth noting that Canada is the largest oil exporter to the United States (US), and higher crude oil prices tend to have a positive impact on the CAD value. Nonetheless, hopes for a positive outcome from Russia-Ukraine peace talks could weigh on the black gold, which undermines the Loonie and helps limit the USD/CAD pair’s losses. 

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