The president-elect of the United States, Donald Trump, warned yesterday that he will sign an executive order in order to impose a 25 percent tariff on all products entering the United States from Mexico and Canada.
On January 20, as one of my many first executive orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent tariff on all products entering the United States and its ridiculously open borders.
he wrote in a message on the Truth Social network.
The magnate indicated that the tariffs will remain in place until the two countries take drastic measures against drugs, particularly fentanyl, and migrants who cross the border illegally.
Shake the weight
Yesterday evening, after the president-elect’s threat, the peso accelerated its weakness against the dollar and was quoted above 20.60 per greenback.
On an international scale – since the Mexican peso operates 24 hours a day, being one of the emerging currencies with the greatest liquidity on a global scale –, it reached prices of 20.70 units to 20.61 pesos per dollar.
In the midst of a dollar that recovered on a global scale, the DXY index, which measures the behavior of the US currency against a basket of six international currencies, advanced 0.43 percent to 107,322 units.
And yesterday morning the Mexican peso had returned to gains against a dollar that weakened in the global wholesale market. After three consecutive downward closings, the Mexican currency appreciated 1.04 percent, equivalent to 21.31 cents against the US currency, to 20.2788 pesos per spot dollar.
Additionally, a second rating agency, HR Ratings, followed in Moody’s footsteps, changing Mexico’s outlook from neutral to negative due to the meager growth expected in the coming years.
According to analysts, Trump brings a lot of volatility to the exchange market due to the threat of taxes on Mexico, Canada and China. In a few hours, the exchange rate could return to levels of 20.50 per dollar or rise again.
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