Mexican stocks fell 4.87%, while Argentine stocks dropped over 7% amid global market panic over potential tariffs imposed by Trump, despite Mexico escaping direct tariffs. Brazil’s Bovespa Index also declined as both Argentina and Brazil faced new tariffs, highlighting trade tensions’ pervasive impact on Latin American markets.
On Friday, Mexican stocks experienced a significant decline of 4.87 percent, despite not being included in President Donald Trump’s list of nations facing reciprocal tariffs. This drop was attributed to widespread panic in global markets regarding an impending trade war. Similarly, Argentine stocks plummeted by over seven percent, a mere two days following the imposition of broad import duties by President Trump on several countries, including Argentina.
The decline in Mexican stocks is noteworthy, especially as they had marginally gained 0.54 percent on Thursday, reflecting initial optimism within Mexico’s economy after avoiding Trump’s “Liberation Day” tariffs. Meanwhile, Brazil, as the largest economy in Latin America, did not escape the tariffs either; thus, both Argentina and Brazil were subjected to a 10 percent tariff, positioned at the lower end of a tariff spectrum that could reach up to 50 percent.
Argentina’s key economic indicator, the Merval Index, diminished by 7.38 percent, while Brazil’s Bovespa Index saw a loss of 2.96 percent. This situation highlights the broader implications of the tariffs on Latin America’s stock markets, affecting investor sentiment and economic outlook across the region.
In summary, the recent imposition of tariffs by President Trump has severely impacted the stock markets of both Mexico and Argentina. While Mexico managed to avoid direct tariffs, the ensuing panic contributed to a significant decline in its stocks. Argentina and Brazil, facing new tariffs, witnessed sharp market drops. This turmoil underscores the volatility introduced by trade tensions in Latin America.
Original Source: tribune.net.ph
