Although the tensions between the two North American nations have been tested since the start of 2025, Canada has filed to sell US dollar bongs. Indeed, the country issued a press release this week announcing the launch of USD-denominated global bonds on Tuesday.
The move is connected to the country’s “commitment to maintain liquid foreign reserves or above 3% of nominal gross domestic product,” according to a statement. Moreover, it comes as US President Donald Trump paused tariffs through a trade deal signed late last week.
JUST IN: 🇨🇦 🇺🇸 Canada files to sell US Dollar bonds.
— Watcher.Guru (@WatcherGuru) March 11, 2025
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Canada to Issue US Dollar Bonds Amid Brewing Trade War
Since his return to the White House, US President Donald Trump has formed a rather contentious relationship with his allies to the North. His integration of aggressive economic policy saw the administration welcome tariffs on the continent’s neighbors, which created increased tensions.
Late last week, Trump issued his second pause on the trade tariffs levied on Mexico and Canada. Moreover, it provides time for the nations to navigate the pursuit of the economic balance that the US is seeking. In the meantime, Canada has filed to sell US dollar bonds.
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“Launching a global bond provides funds to supplement and diversify Canada’s liquid foreign reserves,” the government said in a press release. Moreover, they noted this helps “promote orderly market conditions for the Canadian dollar in foreign exchange markets.”
Additionally, they noted that the government had issued US dollar bonds in April of 2024. Those were worth $3 billion and show precedent for the decision being made now. Either way, the action looks to be the latest in the developing relationship between the countries. It is especially important now, as they have seen their alliance tested in recent months.