Mexican Peso Weakens as Trump Reaffirms Tariff Deadline

The Mexican peso depreciated against the U.S. dollar on Thursday after President Donald Trump confirmed that the 25% tariffs on Mexico and Canada will take effect next Tuesday as originally planned.

By the end of the session, the exchange rate stood at 20.4687 pesos per dollar, compared to 20.4268 pesos yesterday, according to official data from the Bank of Mexico (Banxico). This represents a loss of 4.19 cents, or 0.21%, for the peso.

Market Reaction and Economic Data

Earlier in the day, the peso had gained ground for a second consecutive session following remarks from White House economic advisor Kevin Hassett, who suggested that Trump’s final decision on tariffs would be based on an upcoming economic report due on April 1.

Traders were also digesting U.S. economic data, including a report showing that GDP grew 2.3% quarter-over-quarter in Q4, in line with previous estimates.

However, the market took a hit after Trump posted on Truth Social, reaffirming that the tariffs will take effect in just five days, on Tuesday, March 4, as originally scheduled when the measures were temporarily suspended.

Dollar Strength and Market Volatility

During the session, the dollar traded in a range between a high of 20.5487 and a low of 20.3584 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.69% to 107.24 points, reflecting broad dollar strength.