Mexican and Argentine Stocks Plunge Amid Trump Tariffs

Mexican stocks fell 4.87% and Argentine stocks more than 7% amid fears of a trade war following Trump’s tariff announcements. Argentina’s Merval Index decreased 7.38%, while Brazil’s Bovespa Index lost 2.96%, both affected by imposed 10% tariffs. The turmoil showcases the fragile state of Latin American markets amid international trade disputes.

On Friday, Mexican stocks experienced a significant decline of 4.87 percent, largely driven by widespread panic in global markets amid the onset of a potential trade war, even though Mexico was not included on President Donald Trump’s tariffs list. Concurrently, Argentine stocks suffered a more than seven percent drop, following the imposition of extensive import duties on various nations, including Argentina.

The downturn in Mexico’s stock market follows a slight increase on Thursday, where stocks rose by 0.54 percent, showing initial relief at avoiding Trump’s proposed tariffs, dubbed “Liberation Day.” In contrast, both Brazil and Argentina, key economies in Latin America, were adversely affected, with Argentina’s Merval Index plunging 7.38 percent and Brazil’s Bovespa Index decreasing by 2.96 percent.

Argentina and Brazil were targeted with 10 percent tariffs, which represents a relatively lower end of a broader spectrum of tariffs that could go up to 50 percent, impacting much of Latin America. This situation underscores the vulnerability of these economies in light of international trade tensions, reflecting the far-reaching implications of such tariffs.

In summary, the imposition of tariffs by the United States has triggered considerable volatility in Latin American stock markets, particularly impacting Mexico and Argentina. Despite avoiding immediate tariffs, Mexico’s stocks fell sharply due to global market panic, while Argentina faced steep declines following the announcement. This situation highlights the precarious nature of economies in the region amidst escalating trade tensions.

Original Source: tribune.net.ph