Mexican Peso falls on trade-hawk Lighthizer rumors

The Mexican Peso weakens on rumors Donald Trump has offered the job of trade representative to Robert Lighthizer. 

The former US trade rep is known for his protectionist stance and could squeeze Mexico in future talks.  

The Peso is further weighed by concerns the Republicans will win a majority in Congress, giving them a “clean sweep”.  

The Mexican Peso (MXN) edges lower in its key pairs on Monday after ending last week on a negative note. The Peso lost 1.86% against the US Dollar (USD) on Friday after the Financial Times (FT) published a story about President-elect Donald Trump offering US attorney and known protectionist Robert Lighthizer the job of US Trade Representative, a post he held under Trump’s previous administration. Lighthizer is known to be a tough negotiator after representing the US in the current free trade agreement negotiations between the United States (US), Mexico, and Canada, the USMCA. 

MXN weakened on fears that he will take an equally tough stance when the agreement comes up for renegotiation in 2026. In the run-up to the election, Trump vowed to hit Mexican auto imports with massive tariffs in an attempt to curb the number of cheap Chinese electric vehicles made in Mexico flooding the US market.