Mexican Peso rallies as Trump softens his rhetoric towards Mexico

The Mexican Peso edges higher after President-elect Donald Trump characterized his conversation with President Sheinbaum as “wonderful” late on Wednesday. 

“She has agreed to stop migration through Mexico, and into the United States, effectively closing our southern border,” Trump wrote on Truth Social. 

“We also talked about what can be done to stop the massive drug inflow into the United States, and also, US consumption of these drugs. It was very productive,” Trump continued.

At the start of this week, the Mexican Peso dropped like a lead balloon after Trump announced that he planned to impose a 25% tariff on Mexican imports in an effort to get the country to crack down on illegal immigration and drug smuggling. 

For her part, President Sheinbaum initially appeared to echo Trump’s assessment of their talk, posting on X that she had had “an excellent conversation” with Trump, in which “we discussed Mexico's strategy on the migration phenomenon and I shared that [migrant] caravans are not arriving at the northern border because they are being taken care of in Mexico.