The thread weight three sessions with setbacks and this Thursday had its worst level in more than two weeks, after President Donald Trump announced on the eve the imposition of tariffs on imported vehicles.
The taxes fueled fears of a commercial war and concern about its impact on the economy of Mexico, the largest car supplier in the United States, although Trump’s plans provide a partial exemption for units that comply with the rules of origin of the Regional Covenant of TMEC businesses.
The dollar was 20,3044 pesos, a 0.83% depreciation for the national currency compared to the previous closure, according to Banxico closing data. It was also the worst level of the peso from 20,3623 units per dollar on March 10.
“The depreciation was due to Donald Trump’s decision to impose a 25% tariff on car imports, light trucks and auto parts that are produced outside the United States,” the Base Financial Group said in a report.
He stressed that the most depreciated currencies this Thursday were mainly from emerging economies, highlighting the Colombian peso, the Mexican weight, the Chilean peso, the Russian ruble, the Japanese yen and the Canadian dollar.
Lee: tariffs attempt against automotive competitiveness of North America: Mexican industry
“The announcement of tariffs on cars manufactured outside the US unleashes a lot of uncertainty among Mexicans, given the high exposure of exports to the automotive sector, said Jorge González, director of the firm Advisors in currencies and risks.
“Although the decree was already signed, its effective application still presents several technical questions, mainly around the traceability of origin of parts and components,” he added.
President Claudia Sheinbaum said her administration will give a comprehensive response to the rates on April 3, when the new taxes will enter into force. The Mexican government said it will seek a “preferential treatment” if the United States specifies the measure. A day before, Trump plans to announce reciprocal tariffs to several nations.
In the midst of uncertainty for the economic impact of commercial tensions, the Central Bank announced a second consecutive cutting point at its key interest rate, as expected by the market, and said that forward could consider adjustments of similar magnitude.
“Facing the future, the panorama is still complex,” said Quásar Elizundia, a strata of the Pepperstone firm. “Mexico faces a critical moment in which monetary policy decisions will play a key role in mitigating current uncertainty and sustaining a more stable economic environment,” he said.
In the share market, the leader S&P/BMV IPC index rose 1.27% to 53,477.74 points.
Lee: Sheinbaum will answer Trump tariffs on cars on April 3
He highlighted an advance of 3.53% to 58.39 pesos from the shares of the Wal-Mart retail one in Mexico after he announced that he plans to invest 6,000 million dollars during this year in the country. The firm held during the day a meeting with analysts at its Walmex Day.
As for the secondary debt market, the 10 -year bonus yield descended two base points to 9.47%, while the 20 -year rate culminated without changes against its previous closure by 10.01%.
With Reuters information
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