Investing.com — The Canadian dollar and Mexican peso fell on Tuesday following the inauguration of US President Donald Trump, during which he signaled 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 further details.
In response to the tariff threats, the Mexican peso and the Canadian dollar fell sharply against the US dollar.
The Mexican peso pair rose 1.2% to 20.7126 pesos at 04:43 GMT. The Canadian dollar pair rose 0.8% to 1.442 Canadian dollars.
These declines reflect investor concerns about the potential negative impact of such tariffs on the economies of both countries, which have strong trade ties with the United States.
The , which measures the dollar against a basket of major currencies, rose 0.2%, recovering from earlier losses. This recovery was supported by expected rates, but also by expectations of tighter US monetary policy.
Market analysts noted that the proposed tariffs could disrupt supply chains and trade flows, leading to more volatility in foreign exchange markets. The energy sector in particular may face significant challenges given Canada’s role as a major oil supplier to the US
