The Canadian dollar edged lower against its U.S. counterpart on Tuesday ahead of an expected interest rate cut by the Bank of Canada and as the threat of U.S. trade tariffs drew renewed focus, leading to broad-based gains for the American currency.

President Trump announces upcoming tariffs on Canada and Mexico, causing market turmoil and raising concerns of a trade war.

The U.S. dollar strengthened against major currencies including the yen and euro on Friday, while the Canadian dollar and the Mexican peso edged higher in choppy trading as markets braced for the implementation of President Donald Trump's tariff threats.

Canada's dollar and Mexico's peso were edging higher on Friday, having dropped Thursday after President Donald Trump signaled he planned to impose tariffs on imports from the two countries. Trump told reporters he would follow through with a plan to impose levies on goods from the U.

Canadian officials are anxiously waiting to see if U.S. President Donald Trump follows through on his threat to slap Canada with devastating tariffs Saturday.