Latin American Keys is an informative and analytical summary regarding the political and economic situation in the Latin American region. These key takeaways, prepared monthly by ATREVIA´s Analysis and Research team, serve to be a useful tool in understanding the evolution of the political-institutional state of Latin America.
The arrival of Donald Trump at the White House has been strongly felt in Latin America. His protectionist and isolationist measures, characterized by unilateralism, are already influencing the political, economic, and social reality of a region closely linked to the United States.
Colombia was the first country to nearly enter a trade war with the U.S. after Trump announced commercial and consular reprisals following President Gustavo Petro’s refusal to accept military planes carrying deported individuals in inhumane conditions. The crisis was averted, but it highlighted the country’s economic and diplomatic vulnerability to the North American giant.
A few days later, Mexico, the U.S.’s main trade partner, found itself in a similar situation. The threat of a 25% tariff on Mexican products never materialized after President Claudia Sheinbaum promised several measures related to security and migration. However, the calm didn’t last long, as the White House announced another tariff on steel and aluminum imports, metals of which Brazil and Mexico are the second and third-largest U.S. suppliers, respectively.
In contrast, Trump’s arrival has provided international backing for Argentina’s president Javier Milei, who, alongside his political ally, continues to attack what they call the “woke” ideology and withdraws his country from the WHO. Ecuador’s president, Daniel Noboa, also seems to be emulating the New Yorker, using the threat of tariffs against Mexico to pressure trade issues.
As for countries less affected by this disruption, Peru recorded one of the highest economic growth rates in Latin America, as well as one of the lowest inflation levels. Meanwhile, Chile passed a historic pension system reform, establishing a mixed model. Finally, Uruguay is preparing for Yamandú Orsi to be named the new president on March 1st.
As this new reality takes shape, the European Union could take a more prominent role in the region where the United States is ceding ground. In recent weeks, there have been meetings and agreements to strengthen relations with countries like Mexico and Bolivia, as well as efforts for both regions to advance in digital transformation.
