The Canadian dollar fell to a nearly 22-year low on Sunday, while the Mexican peso and the Chinese yuan slumped after U.S. President Donald Trump imposed new tariffs on Canada, Mexico, and China.

The tariffs, effective from Tuesday, levy 25% on Canadian and Mexican imports, with a 10% rate on Canadian energy products and Chinese goods.

The Canadian dollar fell to its lowest level since early 2003 against the U.S. dollar with the USD/CAD pair jumping 1.4% as of 23:55 GMT.

The Mexican peso hit over a three-year low on Sunday, as the USD/MXN pair surged 2.5%.

The Chinese yuan's offshore par USD/CNH pair also jumped 0.5% after Trump imposed tariffs over the weekend. The yuan was weakest against the U.S. dollar since September 2023.

These currency movements underscore market concerns about potential economic slowdowns in Canada, and Mexico, given their significant trade relationships with the U.S.

The tariffs aim to address issues such as illegal immigration and fentanyl smuggling. However, they have prompted swift retaliatory measures.

Canada announced 25% tariffs on C$155 billion worth of U.S. goods, while Mexico and China vowed corresponding countermeasures, but did not provide further details.

"We see a risk of these responses emerging over the coming week, with any tit-for-tat responses likely to only escalate the trade war and the risk of further non-USD FX depreciation," analysts at Nomura said in a note.