# Forex Market: US tariffs on Mexico, US-China trade war in focus

> The yen rose 0.7% and the dollar fell as much as 0.8% to 108.78 after President Trump threatened new tariffs on Mexico. The Mexican peso plunged on the news, and safe-haven assets such as government bonds gained. Commentators said the move added to concerns that trade tensions could push the global economy into recession.

- Date: 2019-05-31 · published 2019-05-31T12:00:00.000Z
- Category: trade · region Global · magnitude high
- Page: https://feedsoft.ai/events/59301-forex-market-us-tariffs-on-mexico-us-china-trade-war-in-focus
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of slower global growth from tariff escalation could reduce demand for feed grains and oilseed products. A weaker dollar would partly offset this by supporting commodity prices in other currencies.

## Read by commodity

- DXY: bearish ▼
- USDJPY: bearish ▼
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-08-27 | [Forex markets: US-China trade tensions in focus](https://feedsoft.ai/events/57811-forex-markets-us-china-trade-tensions-in-focus.md) | -0.2% | +1.7% |
| CORN | 2019-08-01 | [Trump escalates trade war with more China tariffs](https://feedsoft.ai/events/8497-trump-escalates-trade-war-with-more-china-tariffs.md) | -3.0% | -7.6% |
| CORN | 2019-05-08 | [Trade war: US-China trade battle in charts](https://feedsoft.ai/events/10431-trade-war-us-china-trade-battle-in-charts.md) | +0.3% | +10.5% |
| CORN | 2019-05-13 | [Forex Market: Yuan weakest since December as China adds tariffs](https://feedsoft.ai/events/8441-forex-market-yuan-weakest-since-december-as-china-adds-tariffs.md) | +6.9% | +11.9% |
| CORN | 2024-03-25 | [Limited impact on US agriculture from China tariffs \| Latest Market News](https://feedsoft.ai/events/14765-limited-impact-on-us-agriculture-from-china-tariffs-latest-market-news.md) | -4.9% | -6.9% |
| DXY | 2025-02-04 | [US dollar edges lower as China tariffs kick in](https://feedsoft.ai/events/26336-us-dollar-edges-lower-as-china-tariffs-kick-in.md) | -0.4% | -0.9% |
| DXY | 2025-02-02 | [Dollar lower after U.S. tariffs on Mexico paused for a month](https://feedsoft.ai/events/26268-dollar-lower-after-u-s-tariffs-on-mexico-paused-for-a-month.md) | -0.0% | -0.6% |
| DXY | 2025-01-21 | [Trump to hold off on tariffs, report says, easing trade war fears](https://feedsoft.ai/events/12678-trump-to-hold-off-on-tariffs-report-says-easing-trade-war-fears.md) | -1.1% | -1.7% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/05/31/forex-market-us-tariffs-on-mexico-us-china-trade-war-in-focus.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.