The price of the US dollar reached an average of 20.48 pesos in international and interbank markets during the morning of Tuesday, February 25, 2025. Amid trade tensions due to the application of a 25% tariff against Mexico starting on March 4, the greenback reached a minimum quote of 20.42 pesos and a maximum of 20.52 pesos per dollar. At times, the exchange rate showed a series of small fluctuations of up to four cents, causing a depreciation of the Mexican peso of 0.10%.
In the exchange offices of banks and currency exchange houses in the country, the freely available dollar for the public was traded at a maximum of 21.69 pesos per unit and a minimum of 20.52 pesos. The director of Economic Analysis at Grupo Financiero BASE, Gabriela Siller, explained that financial markets are attentive to the potential application of US tariffs against Mexico and Canada. She noted that US President Donald Trump has insisted on the implementation of the scheduled 25% tariffs against both countries starting on March 4.
"Trump has already established an additional 10% tariff on imports from China, and tariffs on steel and aluminum for Mexico and Canada are also scheduled for March 12," said the expert. Furthermore, the Trump administration is planning to limit China's technological advancements by restricting foreign companies from maintaining semiconductor equipment in the Asian country.
Gabriela Siller also mentioned that genetically modified corn has reappeared on the list of trade tensions affecting Mexico, which could impact the exchange rate of the peso against the dollar. This comes after the Constitutional Points Commission of the Chamber of Deputies approved a reform initiative that prohibits the cultivation of genetically modified corn, prioritizing non-genetically modified corn.
It is important to remember that prior to this reform proposal, the dispute resolution panel of the USMCA ruled against a decision by Mexico that sought to prohibit the import of genetically modified corn. Gabriela Siller concluded that this reform may limit the competitiveness of Mexican farmers growing corn in the international market, especially that of the United States.
