Trump to impose traffics on Mexican imports

5% tariffs on all Mexican imports from June 10

The U.S. is planning to force a 5% tariff on all Mexican imports starting on June 10 and duties will go up to 25%. Tariffs will start in the following months if Mexico does not stop or reduce illegal transportation to the United States. On Thursday the White House said Mexico needs to “reduce or eliminate the number of illegal aliens” crossing into the U.S. Tariff threats came after a letter to congressional officers by the U.S. Trade Representative Robert Lighthizer on Thursday that urges them to start the process of allowing updates to the North American Free Trade Agreement. According to the USTR, the United States imported $346.5 billion of goods from Mexico in 2018, and that makes Mexico the second biggest importer of goods into the United States for 2018.

Mexican peso fell 1.8% after tariff threats

On Friday the Mexican peso dropped to 120-day lows versus the greenback after the U.S surprisingly announced that will strike Mexico with tariffs on all Mexican goods.

The Japanese yen due to its safe-haven nature improved while Trump's move to increase its trade war with other countries pressed down the already weak investor sentiment in global markets. Mizuho Bank chief market economist Daisuke Karakama said “The news on Mexican tariffs came just as the United States is imposing tariffs on China, and the timing is stirring up the markets,”

“Headlines related to trade issues come in short, unpredictable bursts. Currency market reaction is therefore quite intense, but also tends to be short-lived.”

Oil is going straight for its biggest fall since last year

On Friday Oil dropped its heading straight for its largest 30-day decline since late 2018 while trade disputes increased and U.S. crude production came back to record levels.

Brent crude futures, were down at $66.27 falling by 59 cents while

The U.S. WTI crude futures fell down by 51 cents at $56.07 per barrel, WTI earlier registered its lowest level since March 8 at $55.65 a barrel.

Gold up about 0.4% over the week

On Friday Gold increased, and registered its first monthly profit since the beginning of the year. The increase came after the demand for more safe-haven assets following the U.S. President Donald Trump declaration to impose tariffs on all Mexican imports. That move increased anxieties and fear of global economic retardation.

Spot gold moved up 0.2% at $1,290.67 per ounce. It went up about 0.6% so far for the month.

Trump to impose traffics on Mexican imports

5% tariffs on all Mexican imports from June 10

Mexican peso fell 1.8% after tariff threats

Oil is going straight for its biggest fall since last year

Gold up about 0.4% over the week

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