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Mexico ETF drops more than 4% after Trump tariff threat

William L. Watts

The largest exchange-traded fund to track Mexico's equity market fell sharply Friday, after U.S. President Donald Trump threatened to place escalating tariffs on all Mexican imports in an effort to force the country to slow the flow of Central American asylum seekers to the southern U.S. border. The iShares MSCI Mexico ETF fell 4.4% but was off initial lows. The ETF traded as low as $42.14, its lowest since March 14. The Mexican peso was off nearly 3% versus the U.S. dollar . The tariff threat rattled global markets, with investors already nervous about global growth prospects in part due to the continued U.S.-China trade battle. U.S. stocks traded sharply lower, with the S&P 500 off 1.3%. The Dow Jones Industrial Average dropped more than 300 points, or 1.2%, to 24,865.