Investing.com– The Canadian dollar and the Mexican peso weakened on Tuesday after the inauguration of US President Donald Trump, during which he hinted at plans to impose new tariffs on imports from Canada and Mexico.
Trump said he was considering additional tariffs of around 25% that could be announced on February 1, but gave no other details.
In response to the tariff threats, the Mexican peso and the Canadian dollar fell sharply against the US dollar.
The Mexican peso pair jumped 1.2% to 20.7126 pesos at 04:43 GMT. The Canadian dollar pair rose 0.8% to C$1.442.
These declines reflect investor concerns about the possible negative impact of such tariffs on the economies of both countries, which have strong trade ties with the United States.
which measures the dollar against a basket of major currencies, rose 0.2%, recovering from previous losses. Anticipated tariffs, as well as expectations of a tighter US monetary policy, contributed to this recovery.
Market analysts noted that the proposed tariffs could disrupt supply chains and trade flows, leading to increased volatility in currency markets. The energy sector in particular could face significant challenges, given Canada’s role as a major oil supplier to the US
