Canadian dollar, Mexican peso at one-month low as U.S. tariffs set to take effect [Video]

The Canadian dollar and the Mexican peso hunkered near their lowest in a month on Tuesday as trade war fears sapped sentiment after U.S. President Donald Trump said 25% tariffs on goods from the two neighboring countries will take effect on Tuesday.

The loonie was at $1.4496 in early Asian hours having touched a one-month low of $1.45415 on Monday, while the Mexican peso fell 0.2% to 20.7390 per dollar, its lowest since February 3 as traders come to terms with the tariffs.

Trump said there was “no room left” for a deal that would avert the tariffs by curbing fentanyl flows into the United States.

Corporate CEOs and economists say Trump’s tariffs on Canada and Mexico, scheduled to take effect at 12:01 a.m. EST (0501 GMT) on Tuesday, and covering more than $900 billion worth of annual U.S. imports would deal a serious setback to the highly integrated North American economy.

“The market …