Canada’s dollar and Mexico’s peso took a hit Saturday, with Canada’s dollar sliding to its lowest level since 2003, one day after President Trump imposed tariffs on the two nations.
The Canadian dollar dropped 1.4% to roughly C$1.47 against one U.S. dollar.
BREAKING: Canadian dollar plummets to the lowest level against U.S. dollar since 2003: pic.twitter.com/3DSc30FlKu
— End Wokeness (@EndWokeness) February 2, 2025
The Mexican peso also fell more than 2% to 21.15 against one dollar U.S., Financial Times reports.
Chief economist at Mexico’s Banco Base, Gabriela Siller, says, “If the tariff stays on for several months, the [peso’s] exchange rate will reach new historic highs.” She added, “If the tariff stays on, it will be a structural change for Mexico . . . and Mexico could go into a profound recession that would take years to come out of.”
President Trump officially imposed tariffs on Canada, Mexico, and China on Saturday after they had ignored his threats.
Trump slapped the tariffs on the three countries under the International Emergency Economic Powers Act.
- 25% tariffs on all Mexico imports
- 25% tariffs on nearly all Canadian imports — 10% on Canadian energy resources
- 10% tariffs on all China imports
As The Gateway Pundit reported earlier, During a news conference Saturday, Trudeau said, “Canada will be responding to the US trade action with 25% tariffs against $155 billion worth of American goods.” He continued, This will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days’ time to allow Canadian companies and supply chains to seek to find alternatives.
Shopify CEO Tobi Lutke, the CEO of Canada’s second-largest publicly traded company, accurately noted, “Hitting back will not lead to anything good. America will shrug it off. Canada will decline.”
He further slammed Trudeau, saying “every Canadian” wants Canada to work with President Trump to secure the borders and stop the flow of fentanyl. “These are not crazy demands,” he added.
According to the Financial Times, Eric Winograd, chief economist at AllianceBernstein, said, “The clearest implication is a stronger dollar.”
“The currencies that will suffer the most are the ones against whom the tariffs are being imposed,” Winograd added. “There’s a good case to be made that the equity market will suffer a little bit.”
President Trump also said on Friday that he will “absolutely” impose tariffs on the EU, The Gateway Pundit reported.
The Gateway Pundit will continue to provide updates on the implications of President Trump’s tariffs.
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