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 tariff offensive launched by the Trump administration is hitting Latin America unevenly. Overall, the region has not fared too badly, especially considering that the United States is one of its main trading partners. Most countries are facing the minimum 10% rate.
Argentina is among the beneficiaries: the political and personal alignment between Javier Milei and Trump has translated into favorable treatment. Colombia has also received the minimum tariff, despite tensions between President Gustavo Petro and Washington. Uruguay and Paraguay are in a similar situation, although Montevideo is concerned about the impact on key sectors such as beef and pulp.
Chile’s focus was on copper, its top export. Ultimately, refined copper was exempted from the 50% tariff announced for products made with this material, which comes as a relief for the industry. Peru also remains among the best positioned, consolidating the positive momentum reflected in its economic indicators.
Ecuador, on the other hand, has been hit with a 15% tariff. The government is holding talks with the U.S. in search of solutions that would bring it closer to the conditions enjoyed by its neighbors.
Mexico, for its part, secured a last-minute 90-day extension after a call between President Claudia Sheinbaum and Trump. During that period, it must reach agreements on trade and security matters to avoid additional tariffs of 30%.
At the opposite end stands Brazil. The alleged political persecution of former President Jair Bolsonaro, prosecuted for attempting a coup, has been used by the White House as grounds to impose 50% tariffs on nearly 36% of its exports.
The punishment of the South American giant could translate into a competitive advantage for its neighbors. For instance, Colombia’s coffee sector now has the opportunity to expand its presence in the U.S. market, traditionally dominated by Brazilian beans. Similar dynamics are emerging across several industries and products.
