Puerto Vallarta, Mexico – The Mexican peso is gaining strength in international markets following a surprise move by former U.S. President Donald Trump to impose tariffs on goods from several countries—while notably excluding Mexico and Canada.
The peso was trading between 19.9670 and 20.3356 per U.S. dollar on Thursday, bolstered by investor confidence after Trump’s executive order made clear that U.S. trade partners under the United States-Mexico-Canada Agreement (USMCA) would be treated more favorably.
“The omission of Mexico and Canada is a signal that the U.S. intends to handle these two trading partners differently,” said Gabriela Siller, director of economic analysis at Grupo Financiero Base. “It’s a key reason why the peso has appreciated.”
Siller explained that another critical factor contributing to the peso’s gains is the continuation of tariff exemptions for goods complying with USMCA standards. Under the latest executive order, imports from Mexico and Canada will remain tariff-free as long as they comply with USMCA. Non-compliant products will face a 12% tariff, although the 25% tariff that had been in place since March 4 has been officially lifted for both nations.
“The high tariffs on other countries—and the clear path to exemption for USMCA-compliant goods—offer Mexico a unique chance to increase its share in the U.S. market,” Siller added. “While this is unfortunate news for global trade overall, it’s a net positive for Mexico.”
Dollar Weakness Fuels Further Peso Gains
Trump’s tariff decision has had ripple effects beyond North America. The announcement shook global financial markets, causing the dollar to drop against major world currencies. Investors, rattled by the protectionist move, sought safe-haven assets such as the Japanese yen and the Swiss franc.
The dollar index, which tracks the U.S. currency against six major counterparts, dropped over 2% to 101, marking one of its steepest one-day declines in recent memory.
Analysts suggest that while Trump’s tariffs may be politically motivated, the economic consequences are already being felt. The move has further destabilized an already fragile global economy and invited retaliatory measures from affected nations. Yet for Mexico, this presents a rare moment of opportunity.
“Reduced trade between the U.S. and other countries may allow Mexico to step in and meet demand, especially in sectors like automotive and agriculture,” said Siller.
