The Canadian dollars and Mexican Pizo fell to their lowest level in a month, with fears of a commercial war turning into reality after US President Donald Trump carried out his threats to impose customs duties on Canada, Mexico and China.
The new customs duties imposed by Trump by 25% on the goods coming from Mexico and Canada, in addition to raising customs duties on Chinese goods to 20%, entered into force.
In minutes, China said it would impose other customs duties ranging from 10% and 15% on some American imports from March 10.
It is noteworthy that the three countries are the largest commercial partners with the United States, as Mexico controls 16% of trade with America, while Canada controls 14% of them and China is 11%.
Canadian dollar
The Canadian dollar fell to $ 1.4426 in the latest transactions after it touched its lowest level in a month at 1.45415 dollars on Monday, and the Mexican Bizo fell by more than 0.5% to 20.87 against the dollar to reach its lowest level since February 3.
“Trump’s decision to impose customs duties on Mexico and Canada has turned fear into reality,” said Faso Menon.
Menon stated that customs duties will shake the markets because investors are afraid that this step will lead to high inflation and slowdown in the United States because a large part of American imports comes from those countries.
He added: “There is also another danger that Canada and Mexico respond, and if that happens, Trump may increase the escalation and cause more anxiety.”
Canada has already said that the validity of anti -customs duties on the United States will start today, Tuesday.
Mexican advertisement
The Mexican Ministry of Economy said it is expected that the country’s president, Claudia Xinbom, will announce her response to a press conference that will be held on Tuesday in Mexico City.
The yen rose to 148.81 against the dollar to hover near the highest level in 4 months, which he touched last week.
The yuan settled against the dollar.
The euro rose to $ 1.0513 after a sharp recovery in the previous session, while the dealers remained in the event of the hope of reaching a peace agreement that ends the war in Ukraine after European leaders offered a truce.
The sterling pound rose 0.18% to $ 1.2723.
https://www.youtube.com/watch?v=azhujeargm8
gold
In the context, gold prices rose with the rise in commercial tensions due to the entry of customs duties imposed by US President Donald Trump on Canada, Mexico and China.
Gold rose in instant transactions 0.84% to $ 2917.56 an ounce in the latest transactions, and US gold futures increased 0.9% at 1927.10 dollars.
“This decline is part of a broader shock in the markets, which may push prices to drop to a level above $ 2700 before continuing the primary upward trend,” said Capital’s financial market analyst, Kyle Roda.
Roda added that the move is still in a narrow range until now Tuesday, adding that the clear deterioration in global trade relations and the decline in the dollar due to fears of a sudden slowdown in the growth of the American economy gave the market a strong boost last night.
The new customs duties imposed by Trump by 25% on imports from Mexico and Canada entered into force today, as well as increasing customs duties to idealists on Chinese goods to reach 20%, which sparked new trade conflicts with the largest number of commercial partners of the United States.
