Mexican and Argentine stocks saw dramatic declines amid fears of a trade war following new tariffs imposed by President Trump. Mexican stocks fell 4.87 percent despite being excluded from tariffs, while Argentinian stocks plunged over seven percent. Both Argentina and Brazil were hit with import duties, exacerbating market instability in the region.
On Friday, Mexican stocks experienced a significant decline, plummeting by 4.87 percent, despite Mexico being excluded from United States President Donald Trump’s list of countries subjected to reciprocal tariffs. The downturn occurred amid widespread panic in global markets sparked by escalating trade tensions. Argentine stocks faced even harsher consequences, dropping over seven percent on the same day, following the announcement of extensive import duties affecting numerous nations, including Argentina.
The drop in Mexican stocks occurred despite a slight increase on Thursday, where they rose by 0.54 percent, indicating initial relief in Mexico regarding the avoidance of Trump’s “Liberation Day” tariffs. However, this relief waned quickly as uncertainty prevailed in the markets.
In contrast, Argentina, which is Latin America’s third-largest economy, did not fare well; its flagship Merval Index fell by 7.38 percent. Brazil, the largest economy in the region, also suffered losses, with its Bovespa Index declining by 2.96 percent. Both Argentina and Brazil were affected by newly imposed tariffs of 10 percent, which fall within a range that could reach up to 50 percent for other nations.
In summary, the imposition of tariffs by President Donald Trump has resulted in a dramatic decrease in stock values across Mexico and Argentina, with Mexican stocks falling significantly despite an initial reprieve. Argentina and Brazil, facing new tariffs, have experienced sharp declines, illustrating the far-reaching impacts of protectionist trade measures on Latin American economies. The emerging trade war continues to instigate panic in global markets.
Original Source: tribune.net.ph
