- The Mexican peso dropped over 2%, reaching its weakest level since July 2022, as markets reacted to Donald Trump’s announcement of a 25% tariff on imports from Mexico and Canada, signaling heightened trade tensions.
Selling the currency of the U.S.’s largest trading partner, the Mexican peso, could be one of the clearest Trump trades.
The Mexican peso slid over 2% on Tuesday, now trading above 20.8 per dollar for the first time since July 2022.
Posting on his Truth Social platform, the self-described “Tariff Man” Trump says one of his first executive orders will be to impose a 25% tariff on all products coming into the US from Mexico (and Canada).
In response, Mexican President Claudia Sheinbaum indicated Mexico would consider retaliatory tariffs and bolster trade relationships with other partners. “We are not only looking to the north but also to the south and the European continent,” Sheinbaum said. “Mexico is strong, and we will always come out on top.”
Maybe it is time for a stronger Mexico-Canada trade relationship to circumvent the Tariff Man?
