Steep tariffs on Mexico and Canada are set to go into effect on Saturday as President Trump threatens trade with America's neighbors unless they address illegal migration, drug trafficking, and "massive subsidies in the form of deficits.

A deadline for U.S. tariff hikes on two of its top trading partners has global currency markets braced for increased volatility, FX options signal, with the Canadian dollar in the crosshairs.

Canada's dollar and Mexico's peso were edging higher on Friday, having dropped Thursday after President Donald Trump signaled he planned to impose tariffs on imports from the two countries. Trump told reporters he would follow through with a plan to impose levies on goods from the U.