* The value of the Mexican peso in the local currency market has fallen sharply in response to the decision by the US government to extend its tariffs on steel and aluminium imports to Mexico. The value of the peso against the US dollar fell by 0.56% to M$19.92/US$1 on 31 May after the US government confirmed that steel and aluminium imports from Mexico, Canada, and the European Union will from now on have to pay duties of 25% and 10% respectively. Local economists have warned that the depreciation of the peso, which lost 6.51% of its value against the US dollar in May, is now expected to continue over expectations that the US’s move will spark an all-out trade war between the three North American Free Trade Agreement (Nafta) countries - Mexico, the US, and Canada.
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