Canadian wildfires rage, Trump threatens to include pollution costs in tariffs
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The haze caused by wildfires in Canada continues to spread to multiple cities in the United States, prompting Trump to threaten to include pollution costs in tariffs.
On July 17, U.S. President Trump posted on social media accusing Canada of poor forest management, saying that Canadian forest wildfires have affected U.S. air quality, and similar situations occur every year, causing the U.S. "billions of dollars" in losses.
He stated that he would call the Canadian Prime Minister later that day regarding the issue and threatened that the losses must be added to the tariffs Canada pays. Following the news, the USD/CAD exchange rate moved sideways, currently quoted at 1.4010;

The Canadian stock index intraday decline once widened to 0.6%.

The volatility in the Canadian dollar and Canadian stock market remains mild for now, but analysts expect the outcome of the phone call and subsequent policy statements to become the next key observation point.
Air Quality Emergency: Multiple US Cities Ranked Among the Worst Globally
According to the Canadian government's national wildfire briefing, as of Friday afternoon, about 900 fire points across Canada remain burning, among them 122 have been classified as "out of control," meaning the fires are expected to continue spreading.
This week, Canadian wildfire smoke moved massively south, covering large areas of the northeastern and midwestern United States, with air quality index (AQI) in multiple cities deteriorating sharply.
On Thursday, AQI in Toledo, Milwaukee, and Detroit all exceeded 500, far above the "dangerous" warning level of 300.
As of Friday afternoon, Detroit ranked as the city with the worst air quality in the world, Chicago and Washington, D.C. ranked fourth and fifth, and New York ranked fourteenth.
Dr. Jonathan M. Tan, Chief of General Anesthesia at Children’s Hospital of Philadelphia, said:
When the AQI stays above 150 throughout the day, the associated harm is roughly equivalent to smoking seven to nine cigarettes.
Local officials and medical experts advise residents to stay indoors as much as possible, avoid strenuous activity, and wear N95 masks when going outdoors.
According to forecasts by the U.S. National Weather Service, as northwesterly airflow continues to transport Canadian wildfire smoke to the northeastern United States, air pollution issues will persist through this weekend.
Toledo's AQI is expected to drop to the 100–200 range on Saturday, which is still classified as "unhealthy" to "very unhealthy," and the poor air quality in the three aforementioned cities may continue until next Monday.
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