Trump: No Room for Negotiations with Mexico/Canada
Following Tariff Postponement in Early February, Approaching Highest Levels
“Market Concerns Hint at Negative Impact”, ‘[Reporter Yang Ji-yoon from Edaily New York Correspondent Kim Sang-yoon from Edaily] On the 4th (local time), U.S. President Donald Trump reaffirmed that there is no room to avoid the 25% tariffs imposed on Canada and Mexico, causing the currencies of both countries to plummet.’,
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, ‘According to Bloomberg on the 3rd (local time), the dollar-to-Canadian dollar exchange rate rose by 0.5% to 1.453 Canadian dollars from the previous trading day, while the Mexican peso climbed by 0.9% to 20.75 pesos. The Canadian dollar and peso are at their highest levels since President Trump extended the tariff increase deadline in early February.’,
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, ‘President Trump reaffirmed during an event at the White House announcing Taiwanese foundry company TSMC’s investment plans for semiconductor production facilities in the U.S. that the 25% tariff on Canada and Mexico would be implemented from the 4th.’,
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, ‘When asked about whether there was any room for Canada and Mexico to avoid the tariffs by agreeing to curb the inflow of fentanyl into the U.S., he stated, “There is no room for negotiations with Mexico or Canada.”’,
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, ‘The exchange rates of Canada and Mexico rose in response to this news.’,
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, ‘Shaun Osborne, Chief Currency Strategist at Scotiabank, stated, “The market was expecting some concessions such as a tariff reduction or a rate below 25%,” and “The decline in U.S. yields and weakness of U.S. stocks suggest the market is concerned that high tariffs against Canada and Mexico could quickly negatively impact key U.S. industrial sectors.”’,
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, ‘Moreover, the Chinese yuan also strengthened. After President Trump announced that he had signed an order to increase tariffs on China from 10% to 20%, the Chinese yuan rose by 0.2% against the dollar in the offshore market at one point. In forex markets, option traders have steadily established hedge positions in anticipation of declining exchange rates for the Canadian dollar and peso in recent weeks. According to option bets, traders have taken short positions to protect against the weakness of these currencies against the dollar, even though they remain optimistic about the risks associated with the Chinese yuan.’,
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, ‘President Trump announced last month on the 4th that he would impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China. However, as Mexico and Canada agreed to cooperate on border security by cracking down on illegal immigration and drugs, the 25% tariff imposition schedule was postponed by one month, with the additional 10% tariff on China taking effect from the 4th of last month.’,
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, ‘However, President Trump stated on the 27th of last month that unless drug inflows into the U.S. are halted or significantly restricted, tariffs on Mexico and Canada would be imposed as planned on March 4th, and an additional 10% tariff on China would also be applied. The market still considered the possibility that Canada and Mexico could enter negotiations to delay the tariffs, but President Trump asserted that the 25% tariff rate would be imposed as scheduled. For China, the existing tariff would be increased by an additional 20 points.’,
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, ‘President Trump also confirmed that from April 2nd, ‘reciprocal tariffs’ would be applied, taking into account the tariffs and non-tariff barriers imposed by various countries on U.S. products.’,
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, ‘Furthermore, President Trump mentioned the consideration of signing a free trade agreement with Argentina.’,
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