EMERGING MARKETS-Mexican peso hits one-month low after Trump's tariff comments

Updates with mid-session trading

By Shashwat Chauhan, Purvi Agarwal

March 3 (Reuters) - The Mexican peso fell against the dollar on Monday after U.S. President Donald Trump reiterated that tariffs on imports from Canada and Mexico will go into effect on March 4, with no room left for negotiations.

Mexico's peso MXN= hit its lowest level in a month and was last down 0.6%, paring early gains.

U.S. Commerce Secretary Howard Lutnick had reiterated the tariffs deadline over the weekend, but also that Trump would determine whether to stick with the planned 25% level, in the first sign the U.S. might not impose the full threatened levies.

"Tariffs are no longer a mere negotiating tactic employed by President Trump ... the shift in the U.S.' traditional approach to trade is a major transition for the global economy, it will take time to adapt to this new world order, and the impact is being felt across financial markets," said Kathleen Brooks, research director at trading platform XTB.

Trump has left investors uncertain about the outlook for emerging markets with his back-and-forth stance on tariffs. The U.S. president raised hopes of a further delay in the duties last week, before going back to the March 4 deadline.

In his latest remarks on the issue, Trump alerted American farmers to coming U.S. tariffs on "external product," telling them to get ready to sell their goods domestically.

The greenback weakened after three sessions of gains, boosting most emerging market currencies. The Colombian peso COP= and Chile's peso CLP= gained 0.9% each, the latter also benefiting from an uptick in copper prices.

Investors also awaited clarity on additional 10% U.S. tariffs on Chinese goods, also due to come into effect on March 4, amid reports that China is studying relevant countermeasures.

Any impact on the Chinese economy remains vital for Latin American countries, which are heavy producers of commodities - of which China is one of the world's biggest consumers.

Regional stock indexes were broadly higher, with those in Mexico .MXX and Chile .SPIPSA up 0.5% and 0.2%, respectively. Stocks in Colombia .COLCAP were off 0.9%.

Elsewhere, Ukraine's international bonds tumbled more than 3 cents on the dollar each, on fallout from the clash on Friday between President Volodymyr Zelenskiy and Trump in Washington.

The 2036 maturity XS2895056526=TE slid about 3.5 cents on the dollar, and was last bid at 53.698 cents.

Britain said on Monday there were several possible proposals on the table for a possible Ukraine ceasefire, after France floated a proposal for a month-long initial truce that could pave the way for peace talks.

Global markets will also track monthly U.S. jobs data due on Friday amid growing concerns over the economy's health, with traders ramping up bets of greater monetary policy easing by the Federal Reserve this year.

MSCI's indexes for Latin American stocks .MILA00000PUS and currencies .MILA00000CUS were each off 0.3%.

Equity markets in Brazil and Argentina were closed for public holidays.

HIGHLIGHTS

China's trade dominance in South America tempers Trump's influence

Mexico has back-up plan in case Trump goes through with tariff threat, president says

Chile's economic activity up 2.5% year-on-year in January

*Egypt's alternative to Trump's 'Gaza Riviera' aims to sideline Hamas

Key Latin American stock indexes and currencies: