Societe Generale reports that USD/MXN has moved back below 17.00 as Mexican officials engage with US counterparts on trade issues following a widening US-Canada rift. The bank highlights a sharp drop in Mexico’s car imports from China after tariff adjustments aimed at protecting local jobs. President Sheinbaum remains optimistic on a trade agreement with the US, while the manufacturing PMI slipped back into contraction territory in August.
Tariffs and weaker PMI shape Peso
“USD/MXN returned below 17.00. Economy Minister Ebrard met US Commerce Secretary Howard Lutnick at the sidelines of the G20 summit to discuss trade after the widening of the US-Canada trade rift.”
“Ebrard said that Mexico car imports from China fell 31.1% yoy in 1H26 to 158,571 units following tariff adjustments that were designed to protect roughly 350k local jobs from unfair trade practices.”
“President Sheinbaum expressed optimism of reaching an agreement on trade the US soon.”
“On data front, the manufacturing PMI returned to contraction mode, falling to 49.8 in August vs 51.3 in July.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
