Investing.com– The Mexican peso and Canadian dollar fell sharply against the U.S. dollar on Tuesday, while offshore indexes fell after President-elect Donald Trump announced he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, citing concerns about illegal immigration and the illegal drug trade.
Trump, in a post on Truth.social, said he had had numerous conversations with Chinese officials about limiting the supply of drugs, particularly fentanyl, to the U.S., but said such talks had yielded no results and that “drugs are still flowing into the United States.” . into our country, mainly through Mexico, at a level never seen before.”
The Mexican peso pair rose 1.8% to its highest level since early November, while the Canadian dollar rose more than 1% to its highest level since May 2020.
In China, the overseas yuan pair rose 0.3% on Tuesday. Trump has threatened to impose tariffs of up to 60% on all Chinese goods, which could potentially spark a renewed trade war between the world’s largest economies.
They jumped by 0.5%, although they were also higher in Asian trade.
During the election campaign, Trump consistently supported the introduction of a uniform 10% import tariff rate for all US trading partners.
