The Mexican peso weakened to a historic low of 22.04 per dollar and the country’s stock index fell on Wednesday Jan. 11, after U.S. President-elect Donald Trump warned U.S. auto companies would face a high tax for products made south of the border.
Speaking at a news conference in New York, Trump also reiterated that the United States would start building a southern border wall after he took office next week, Reuters reported. He said Mexico would reimburse the cost either through a tax or a payment.
The Mexican currency regained some ground after passing the psychological 22 peso barrier to trade at 21.77 per dollar at 13:09 a.m. eastern (1709 GMT). The IPC stock index .MXX fell 0.73 pct to 45,550.
The peso was the worst-performing major currency last year, weakening 20 percent against the dollar as Trump closed in on the U.S. presidency.
The depreciation has sped up in 2017 after Trump told major automakers last week to expect high taxes on vehicles made in Mexico that are sold in the United States.
On Wednesday, Trump congratulated Ford (F.N) and Fiat Chrysler (FCHA.MI) for announcing plant expansions in the United States. He said General Motors, another major investor in Mexico, should follow suit, reiterating the threat of new taxes on Mexican-made autos.
He said he would not wait for negotiations with Mexico to be completed before starting to build a wall along the two countries’ border.
“I could wait about a year and a half until we finish our negotiations with Mexico which will start immediately after we get into office, but I don’t want to wait,” Trump said.
“Mexico in some form … will reimburse us,” Trump added.
He said his vice president-elect Mike Pence was “leading an effort to get final approvals through various agencies and through Congress for the wall to begin.”
“Neither today, nor tomorrow nor never Mexico will pay for that stupid wall. If Trump wants a monument to his ego, let him pay for it!!,” former president Vicente Fox, said on Twitter during the news conference, describing the U.S. leader as “a bully and a bluff.”
more recommended stories
UNAM promotes creation of hummingbird gardens in order to improve ecology
Hummingbirds have a great ecological importance.
Mérida’s soccer team was bought years ago with money from the Sinaloa Cartel
Tirso ‘El Futbolista‘ Martinez Sanchez, a.
Five Haciendas, five different worlds in Yucatán and Campeche
The taste, history and culture of.
Mérida wins national award for “Paseo de las Ánimas”
Due to the maintaince and promotion.
Why Trump Appears When You Google “Idiot”?
Why is Donald Trump dominating Google.
U.S. Secretary of State Mike Pompeo says new Mexican government ‘great’ on immigration
WASHINGTON (Reuters) – On Wednesday December.
Wedding Planners from the United States and Canada fall in love with Yucatan
Because of its cultural, gastronomic, artistic.
Make Your Play in Yucatán
Yucatán Peninsula casinos and hotels are.
Will the Maya Train project put the jaguar population in risk?
Businessman José María Riobóo name was.
Take the new guided tour of Mérida’s Paseo de Montejo!
On December 10, The City of.