The peso plunged on Tuesday after Mexico imposed tariffs on US imports including bourbon, apples, potatoes, cheese and pork in retaliation to the Trump administration’s levies on steel and aluminium.
The announcement of tariffs ranging from 15 per cent to 25 per cent came as the future of the Nafta trade agreement came under fresh attack from the White House.
“An open trade war has finally erupted in the backyard of the US, with potentially dire repercussions for the survival of Nafta,” said Eswar Prasad, a professor of trade policy and economics at Cornell University.
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