Mexican Peso Rallies as USD Slides on Trump's New Tariff Threats

Mexican Peso Strengthens as Tariff Shock Weighs on the US Dollar

The Mexican Peso (MXN) is advancing against the US Dollar (USD) in Monday trading, pushing USD/MXN below the psychological level of 19.30. The move comes after US President Donald Trump announced a surprise tariff hike on steel and aluminum imports, raising duties to 50% from 25%.

Tariff Hike Rekindles Trade War Fears, Pressures USD

Trump’s Friday remarks during a visit to a US Steel Corp. facility have reignited US trade policy concerns. The aggressive move to double import tariffs is aimed at shielding the domestic steel sector but has instead rattled investors, leading to a broad sell-off in the US Dollar.

Despite Mexico’s role as a key US trading partner and metals exporter, the Peso remains resilient, likely benefiting from broader USD weakness and reduced appetite for risk.

USD/MXN Technical Outlook – Below 19.30 Support

Technically, USD/MXN is under pressure as it trades beneath the former support zone of 19.30. A sustained break below this level could open the door to further losses toward 19.10 or even 18.90, especially if global sentiment remains cautious and the USD continues to retreat.

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