The dollar strengthened after Donald Trump's announcement on the imposition of tariffs on Mexico and Canada, boosting the DXY index and affecting the currencies of both countries.

Trump confirmed the imposition of tariffs on his North American trading partners and justified the measure with three arguments: the increase in irregular migration, the entry of drugs such as fentanyl into the United States and subsidies that, according to him, benefit Canada and Mexico at the expense of the U.S. deficit.

Following the statements, the DXY index, which compares the dollar against the world's major currencies, rose to session highs, while the Bloomberg Dollar Spot index advanced as much as 0.2% and erased the losses it had shown during the day.

The Mexican peso also reacted and even registered a loss of 1.10% to 20.74 Mexican pesos, while the Canadian dollar fell as much as 1.2%.

Trump, in statements reviewed by Bloomberg, raised the tone of his warning by stating that tariffs "may or may not increase over time". He also announced that he would make a decision on Thursday night on the possible imposition of tariffs on Canadian oil imports.

"We don't need the products they offer. We have all the oil you need and all the trees you need," he said, referring to imports from Canada.

According to an analysis by S&P Global Ratings, published today, in a hypothetical scenario in which the United States imposes a 25% across-the-board tariff on imports from Canada and Mexico, some sectors would be particularly vulnerable to this impact.

Carlos Rodríguez Salcedo, Bloomberg