Potential Impact on CAD and MXN if Trump Threatens USMCA Exit

Strategists at Mitsubishi UFJ Bank, including Lee Hardman, have indicated that the Canadian dollar (CAD) and Mexican peso (MXN) could weaken if U.S. President Donald Trump threatens to exit the United States-Mexico-Canada Agreement (USMCA). According to Jin10, Hardman noted that Trump's past negotiation tactics often involve using withdrawal threats as leverage to secure more favorable terms. While this poses a risk to CAD and MXN in the coming months, skepticism about whether such a threat would be actualized is expected to limit the currencies' potential depreciation.