Market Wire: Peso Jumps As Trump Pauses Tariffs on Mexico

The peso is surging after Donald Trump announced another pause in tariffs on Mexico—only three days after putting them in place.

In a post on his social media platform, the president said, “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!”

The reversal comes after Commerce Secretary Howard Lutnick told CNBC that tariffs on Mexico and Canada could be reduced as soon as this afternoon, touching off a recovery in the peso and loonie, and after yesterday’s one-month pause in levies on the auto industry in both countries.

Trump spoke earlier with outgoing Canadian Prime Minister Justin Trudeau, but appears not to have reached an agreement with him. The Canadian dollar is nonetheless matching the peso’s gains, suggesting that markets expect a similar dynamic to play out in the coming days.

Stay tuned for the next episode in the world’s dumbest—but still most dangerous—reality show.