Investing.com — The Mexican peso weakened sharply on Sunday while the Canadian dollar softened amid heightened fears that US President Donald Trump will deliver on his tariff threats after imposing steep tariffs on Colombia.
The Mexican peso was hit harder, with the pair measuring the amount of pesos needed to buy the dollar rising 1.1% to 20.4949 pesos.
The Canadian dollar also weakened, with the pair rising 0.1% to 1.4381 Canadian dollars.
The security of about 0.2% against a basket of currencies, although it was steep losses from last week.
Both currencies were hit by heightened concerns that Trump will make good on his threats to impose up to 25% tariffs on Mexico and Canada, after the president imposed a 25% tariff on all imports from Colombia.
Trump imposed the tariffs after Colombia refused to allow two US military planes deported migrants to land in the country, punishing the Latin American country for refusing to comply with its immigration policies.
Trump warned that tariffs will rise to 50% by next week on further non-compliance, souring relations between the two countries.
The US president had threatened similar tariffs against Canada and Mexico over immigration issues and what he considers unfair trade practices. Trump also floated the possibility of a 10% duty on China, which could be imposed as soon as February 1.
