January 16, 2017 / 11:56 PM / 2 years ago

EMERGING MARKETS-Mexico peso weakens on Trump auto tariff threat

(Updates Table)
    By Bruno Federowski
    SAO PAULO, Jan 16 (Reuters) - The Mexican peso fell more
than 1 percent on Monday, after U.S. President-elect Donald
Trump threatened to slap tariffs on German carmakers, which are
stepping up production in low-cost Mexican plants.
    In an interview with German newspaper Bild, Trump warned he
would impose a border tax of 35 percent on vehicles imported to
the U.S. market, following campaign promises to revive U.S.
industrial jobs and curtail imports from Mexico. 
    Earlier this month, Ford Motor Co scrapped a planned
Mexican car factory following criticism from Trump on Twitter,
driving the peso to an all-time low. 
    The peso weakened 1.2 percent on Monday, the
worst-performing currency in Latin America. Other currencies
were mixed in thin trading volumes as U.S. markets remained
closed due to a holiday.
    Brazilian stocks inched up 0.2 percent, supported by rising
shares of miner Vale SA and key shareholder Bradespar
    Key Latin American currencies at 2315 GMT:
 Currencies                         daily %    YTD %
                                     change   change
 Brazil real                3.2370     0.51     0.37
 Mexico peso               21.7335    -1.19    -4.55
 Chile peso                 662.10    -0.51     1.29
 Colombia peso             2937.79     0.21     2.16
 Peru sol                   3.3690    -0.20     1.33
 (Reporting by Bruno Federowski; Editing by Nick Zieminski and
Marguerita Choy)
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