South American nations got off fairly easy with President Trump’s tariffs, as countries from Brazil, Argentina, Chile and Peru were hit with the minimum 10% tariff rate.
That means that many Latin American officials “are likely to be breathing sighs of relief,” says Capital Economics. But it’s not all good news as economists say the growing risk of a global trade war and U.S. recession will still batter a region whose economies rely on exporting commodities like iron ore and oil.
Take Peru, one of the world’s top copper producers where mining accounts for around 60% of the country’s total exports. A decline in copper prices due to the global downturn will hit export revenue while reducing new mining investments at home, says Alfredo Thorne, a former Peruvian finance minister.
“If the U.S. falls into a recession, that is going to hit Peru decisively and there is no way that Peru can overcome that,” he says. “We are very exposed.” (https://www.wsj.com/livecoverage/trump-tariffs-trade-war-markets-04-05-25/card/latin-american-nations-got-off-easy-on-tariffs-but-still-face-risks-5NIjB8RegepByfL5PXHe)
