Mexican Peso Depreciates by 0.24% Following U.S. Trade Tariff Announcements
Mexico City—July 7, 2025 (El Universal)—In a dynamic global market, the Mexican peso has weaken to approximately 18.67 pesos per dollar, marking a depreciation of 0.24% or 4 cents from the previous day. This movement coincided with a strengthening of the U.S. dollar by 0.48% according to the weighted index, fueled by an increase in risk sparked by high tariff announcements.
Understanding the Market Reactivity
The peso was one of the least affected currencies, second only to the Chinese yuan, which experienced a depreciation of 0.15%. The retail dollar closed at 19.15 pesos for sale at Banamex branches, marking a 0.26% or 5 cents increase from last Friday. market analysts predict continued cautious behavior and high volatility due to the ongoing tariff announcements.
Background and Expert Insights
Donald Trump’s announcement of high tariffs for several countries led to significant market jitters. Gabriela Siller, director of Economic and Financial Analysis of Grupo Base, noted that the high tariffs signal a persistent protectionist stance from the U.S. during Trump’s term. These tariffs affect countries like Japan, South Korea, and Indonesia—all significant trading partners with the U.S.
A Historic Perspective
Historically, such tariff announcements have destabilized global markets, leading to currency fluctuations and economic uncertainty. Today’s tariff hikes follow a pattern set in April, reinforcing the U.S.’s commitments to protectionism and isolationism. This has especially impacted Mexico, though it escaped immediate tariffs in this round of announcements.
Stock Market Impact
The Dow Jones, Nasdaq, and S&P 500 all saw considerable losses, recording declines of 0.94%, 0.92%, and 0.79% respectively. The Mexican stock market, the BMV, also dipped, falling by 0.96%. Major companies such as Walmex, Pacific Airport Group, and CEMEX saw losses ranging from 1.4% to 2.6%.
Looking Ahead
Financial experts advise vigilance in light of potential further tariff declarations. Investors should anticipate continued pressures on exchange rates and significant market volatility. For those seeking to mitigate risks, diversifying currency portfolios and monitoring economic indicators can provide some stability amid these turbulent times.
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