Trump’s tariffs send Canadian dollar and Mexican peso into freefall, gold surges.

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In a dramatic turn of events, the value of both the Canadian dollar and the Mexican peso plummeted immediately following President Trump’s announcement of new tariffs. The U.S. dollar surged to its strongest level against the Canadian dollar since 2003, marking a significant shift in the global economic landscape.

The tariffs, which include a 25% duty on imports from Canada and Mexico and a 10% duty on imports from China, were imposed as part of Trump’s strategy to address issues related to drug trafficking and illegal immigration. The announcement has sparked concerns about a potential trade war, with Canada and Mexico expected to retaliate with their own tariffs.

The impact on the Canadian dollar has been particularly severe. The loonie, as it is commonly known, has fallen to its lowest level in over two decades. This decline is expected to have far-reaching implications for the Canadian economy, affecting everything from consumer prices to export competitiveness.

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Similarly, the Mexican peso has also experienced a sharp decline. The currency’s value has dropped significantly, raising concerns about the potential economic fallout in Mexico. Analysts predict that the tariffs could lead to higher inflation and slower economic growth in both Canada and Mexico.

Amidst this turmoil, gold has emerged as a safe haven for investors. The price of gold in Canadian dollars has surged to $4,125, signaling a warning to the markets. This increase reflects investors’ concerns about the stability of the global economy and their desire to protect their wealth in uncertain times.

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As the trade war begins, the global economic landscape is set to undergo significant changes. The immediate effects of the tariffs are already being felt, and the long-term implications remain to be seen.


Sources:

https://www.livepriceofgold.com/canada-gold-price.html

https://www.usnews.com/news/world/articles/2025-02-01/trump-readies-order-for-steep-tariffs-on-goods-from-mexico-canada-china

https://www.econotimes.com/Trump-Imposes-Tariffs-on-Canada-Mexico-and-China-Amid-National-Emergency-1700803

https://www.devdiscourse.com/article/headlines/3249922-trade-war-turbulence-markets-brace-for-impact

https://www.msn.com/en-us/money/markets/yen-set-for-best-january-in-seven-years-as-rates-path-diverge/ar-AA1y9r5L

https://www.fxstreet.com/news/gbp-usd-falls-below-12300-following-trump-tariffs-threats-202502030050

https://finance.yahoo.com/news/markets-look-extend-dollar-gains-161511371.html

https://www.morningstar.ca/ca/news/258873/a-grim-outlook-for-the-canadian-dollar-in-2025.aspx

https://dailyhodl.com/2025/01/24/golds-outperformance-in-2024-may-not-be-a-good-sign-for-bitcoin-and-other-risk-assets-says-bloomberg-analyst/


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