President Trump plans to impose 25% tariffs on Mexico and Canada, effective February 1, due to concerns over undocumented migrants and drug trade. The tariffs would affect USD 1.8 tln in trade, potentially causing a trade war and significant impacts on the US auto industry, with new-car prices rising by USD 3,000. This move could destabilize the US-Mexico-Canada Agreement and disrupt auto supply chains. Consequently, the Mexican peso, a focal point for investors trying to predict the impact of Trump’s trade policies, tumbled 1.4%.