USD/MXN Dips as Mexico Wins 90‑Day Tariff Reprieve

🇺🇸🇲🇽 USD/MXN Holds Below 19.00 as Mexico Gets 90‑Day Tariff Reprieve

The USD/MXN pair is holding just below 19.00, as the Mexican peso finds support after President Trump granted Mexico a 90‑day reprieve from a planned 30% tariff hike on many goods.

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📰 Key Developments

• 90‑Day Tariff Reprieve

• Trump postponed a 30% tariff on most non‑automotive, non‑metal Mexican exports to the U.S.

• Mexico now has more time to negotiate a broader trade deal.

• Mexican President Claudia Sheinbaum confirmed on X: “We avoided the tariff increase announced for tomorrow.”

• Tariffs Still in Place

• 50% tariffs remain on Mexican steel, aluminum, and copper

• 25% tariffs remain on autos and non‑USMCA‑compliant goods

• Tariffs are partly linked to U.S. measures on the fentanyl crisis

• USD Underpinned by Fed Outlook

• The U.S. PCE inflation report signals that rate cuts may be delayed until at least October

• USD/MXN traded near 18.90 in Asian hours after five days of gains

• Traders now look to U.S. Nonfarm Payrolls (NFP) data for the next market driver

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💡 BER Insight

The peso’s short‑term strength reflects relief over the tariff delay, but risks remain:

• High tariffs on metals and autos continue to weigh on trade

• U.S. monetary policy and the timing of Fed rate cuts will remain key drivers for USD/MXN

Travellers and businesses moving money to or from Mexico should watch for volatility around U.S. data releases.

Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.