The Mexican peso is sliding after report says Trump will move forward with tariffs on the US's closest allies

Henry Romero/REUTERS

Donald Trump with Enrique Peña Nieto.

• The Mexican peso was down 0.68% versus the dollar early Thursday.
• Trump is reportedly set to follow through with tariff threats on Mexico, Canada, and the European Union.
• Follow the Mexican peso in real time here.

The Mexican peso slumped against the US dollar Thursday following a report suggesting President Donald Trump is set to move forward with steel and aluminum tariffs on Mexico, Canada, and the European Union as soon as the end of the week.

The peso was down 0.73% to 19.8900 versus the dollar at 8:30 a.m. ET.

The Wall Street Journal reported that the Trump administration is planning to impose tariffs after failing to win trade concessions from the European Union ahead of a Friday deadline. Trump threatened the US's closest allies with import taxes, 25% on steel and 10% on aluminum, in March.

The peso's slide has been "limited" so far because the currency has already priced in the the risk of an unsuccessful NAFTA deal, Mizuho Bank emerging markets currency trader Masakatsu Fukaya told Bloomberg.

"The fact that the US would impose tariffs because of that isn't that surprising," Fukaya said.

The dollar is up 1% against the peso this year.

Markets Insider