#topicdiscussion The election of Donald Trump in 2024 has generated fresh waves of uncertainty and opportunity for the Canadian dollar (CAD) against the U.S. dollar (USD). With Trump’s return to the White House, investors are preparing for potential changes in U.S.-Canada trade relations, as Trump has a history of re-negotiating trade deals and focusing on "America First" policies. These moves often affect the strength of the CAD, especially since the Canadian economy relies heavily on exports to the U.S. In the short term, Trump’s pro-oil stance has provided a slight lift to the CAD, as Canada is a major oil exporter and the market expects an increase in U.S. oil demand. However, any new tariffs or protectionist policies could weigh on the CAD by impacting cross-border trade and creating pressure on sectors like manufacturing and agriculture, which depend on open access to the U.S. market. Investors in the CAD are also closely watching for Trump’s approach to monetary policy and interest rates. If the U.S. Federal Reserve opts for lower rates to stimulate growth under Trump, the USD might weaken, which could strengthen the CAD in comparison. On the other hand, if inflationary pressures mount in the U.S., a strong dollar could put downward pressure on the CAD. Overall, Trump’s 2024 election win introduces a mixed outlook for the CAD, with short-term boosts from energy expectations and longer-term risks tied to possible trade disruptions and shifts in the U.S. economy.