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
Hurricane Rick makes landfall on Michoacan’s coast
MEXICO CITY (Reuters) – The eye.
Bus accident on the Felipe Carrillo Puerto-Chetumal highway leaves 3 dead and several injured
Chetumal, Quintana Roo, (October 25, 2021).-.
These are the vaccination rules in the U.S. for international travel reopening on Nov. 8
WASHINGTON, Oct 25 (Reuters) – The.
Container shortage impacts imports to the Port of Progreso
Foreign trade agencies begin to feel.
An oversight almost cost the life of a two-year-old baby in Tizimín
After drinking rat poison, a 2-year-old.
Two drunk men jumped from the dock of Progreso, they were rescued by local police (VIDEO)
Agents of the Progreso Ecological Police.
Deviation of 12 million pesos detected in Espita, Yucatan
MÉRIDA, MX.- A 12 million pesos.
Foreigner commits suicide by jumping off a bridge near the Cancun Airport
Cancun, Quintana Roo, (October 25, 2021).
Elimination of single-use plastics concludes next year in Yucatán
Mérida, Yucatán – The elimination of.
Public works budget to be cut next year
The CMIC estimates that 2022 will.