Puerto Vallarta, Mexico – The Mexican peso weakened against the U.S. dollar on Tuesday morning after President Donald Trump reaffirmed that tariffs on goods from Mexico and Canada would go forward next week. Despite a prior 30-day suspension, the U.S. administration appears set to enact the levies beginning March 4.
According to official data from the Bank of Mexico (Banxico), the spot exchange rate stood at 20.4466 pesos per dollar in mid-morning trading, compared to Monday’s closing price of 20.4272 pesos. This translates to a decline of 1.94 centavos, or 0.10%, for the Mexican currency.
Market data indicates the dollar has fluctuated between a high of 20.5260 pesos and a low of 20.4237 pesos throughout the session. Meanwhile, the Intercontinental Exchange Dollar Index (DXY), which compares the greenback against a basket of six major currencies, fell 0.34% to 106.31.
Trump’s Tariff Timeline Speaking at the White House on Monday, President Trump stated that tariffs “will come on time and as planned” next Tuesday, despite efforts by the Mexican and Canadian governments to strengthen border security and curb the flow of fentanyl into the United States. The announcement dashed hopes among traders that the two neighboring countries—America’s largest trading partners—could negotiate a further delay.
“The Mexican peso is trading with ups and downs, following comments by the President of the United States, Donald Trump, that tariffs on imports from Mexico and Canada will be applied starting next March 4,” analysts at CiBanco said in a report circulated Tuesday morning.
Broader Market Reaction Economists note that Trump’s tariff stance places renewed pressure on both Mexico and Canada. The tariffs are expected to affect a range of sectors, including automotive, industrial, and energy. While the full economic impact remains to be seen, currency strategists caution that heightened trade tensions typically encourage risk-averse investors to move capital to safer havens, putting additional strain on emerging-market currencies like the Mexican peso.
With the deadline for tariffs quickly approaching, analysts will be closely monitoring any further developments or negotiations that could alter the timeline—or soften the impact—of the new levies. For now, the peso is expected to remain under pressure as the markets await clearer signals from Washington on the future of these trade measures.
Puerto Vallarta, Mexico - The Mexican peso weakened against the U.S. dollar on Tuesday morning after President Donald Trump reaffirmed that tariffs on goods from Mexico and Canada would go forward next week. Despite a prior 30-day suspension, the U.S. administration appears set to enact the levies beginning March 4.
