Mexican stocks fell 4.87% amid global trade war fears, despite avoiding US tariffs. Argentine stocks dropped over 7% after Trump’s import duties were imposed. Brazil’s Bovespa Index also fell, reflecting regional economic stress as both countries face 10% tariffs.
On Friday, Mexican stocks experienced a significant decline of 4.87%, triggered by global market concerns over a potential trade war, despite not being included in US President Donald Trump’s tariff list. Meanwhile, Argentine stocks dropped more than 7% as Trump enforced extensive import duties on several nations, including Argentina, just two days prior. Mexico’s stock market had shown slight growth of 0.54% on Thursday, indicating initial optimism within its economy after avoiding Trump’s “Liberation Day” tariffs.
In contrast, both Brazil and Argentina faced significant losses. Argentina’s prominent Merval Index plummeted by 7.38%, while Brazil’s Bovespa Index decreased by 2.96%. Both countries were subjected to a 10% tariff, which, while lower than those imposed on some nations, contributes to their economic strain amid regional trade tensions. Argentina is the third-largest economy in Latin America, following Brazil, and both nations now navigate increased challenges from U.S. tariff policies.
In summary, Mexican stocks dropped unexpectedly despite being spared from Trump’s tariffs, signaling anxiety amidst global trade tensions. Argentina faced a sharper decline due to the newly imposed tariffs, revealing the impact of U.S. trade policies on Latin American markets. Both economies, particularly Brazil and Argentina, are now under pressure to manage their exposure to these tariffs, which could further destabilize their financial landscapes.
Original Source: tribune.net.ph
