Mexican peso slides, Canadian greenback weakens as Trump imposes tariffs on Colombia

Investing.com– The Mexican peso weakened sharply on Sunday, whereas the Canadian greenback softened amid heightened fears that U.S. President Donald Trump will ship on his tariff threats, after he imposed steep import duties on Colombia. 

The Mexican peso was extra badly hit, with the USD/MXN pair- which gauges the quantity of pesos required to purchase one dollar- rising 1.1% to twenty.4949 pesos.

The Canadian greenback additionally weakened, with the USD/CAD pair rising 0.1% to 1.4381 Canadian {dollars}. 

The U.S. greenback firmed about 0.2% towards a basket of currencies, though it was nursing steep losses from final week.

Each currencies have been hit by heightened issues that Trump will make good on his threats to impose as much as 25% import 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 permit two U.S. navy planes carrying deported migrants to land within the nation, punishing the Latin American nation for refusing to conform together with his immigration insurance policies. 

Trump warned that the tariffs will improve to 50% by subsequent week on additional noncompliance, souring relations between the 2 international locations. 

The U.S. President had threatened related tariffs towards Canada and Mexico over problems with immigration and what he sees as unfair commerce practices. Trump had additionally floated the opportunity of a ten% responsibility on China, which might be imposed as quickly as February 1.