Latin America News
LAST UPDATE: July 17, 2025
Canada Imposes Limits on Steel Imports From All Countries Except for U.S., Mexico
Canada will impose a 25% surtax or quotas on steel imports from non-FTA countries (excluding the U.S. and Mexico), in response to U.S. steel and aluminum tariffs under Section 232 .
Insight
Canada is mirroring U.S. protectionist moves to shield its steel sector while preserving NAFTA/CUSMA trade flows—highlighting the regional ripple effect of U.S. tariffs.
Milei Tightens Grip On Argentina’s Market Left Awash in Pesos
President Javier Milei intervened heavily in currency markets to stabilize the peso after it plunged 10%, issuing debt and restricting banks despite free‑float policy .
Insight
Milei’s intervention signals a shift from libertarian orthodoxy—prioritizing stability over pure free-market doctrine, which may unsettle investors and erode his free‑market credibility.
Milei’s Rift With His Vice President Now ‘Undoubtedly a Crisis’
A Bloomberg source reports President Milei’s relationship with Vice President Victoria Villarruel has deteriorated into a full-blown political crisis .
Insight
Political cohesion in Milei’s government is faltering, jeopardizing policy consistency and potentially delaying key economic reforms under his administration.
Argentina logs six months of budget surplus
Argentina recorded six consecutive monthly budget surpluses in June—551 billion pesos financial and 790 billion primary—reflecting the effects of Milei’s austerity measures .
Insight
The persistent surplus is a fiscal achievement validating Milei’s austerity policies, but may deepen currency pressures unless matched by revenue reforms.
Colombia’s Petro seeks to walk back pension funds’ ability to invest abroad
President Gustavo Petro has asked to repeal a decree allowing Colombian pension funds to invest abroad, aiming to keep investment within domestic markets .
Insight
Petro is reasserting state control over pension capital to support domestic investment, which could limit global diversification and affect pension returns.
Suriname’s new president touts desire for fiscal discipline, social progress
At her swearing-in ceremony on July 16, President Jennifer Geerlings‑Simons emphasized that fiscal discipline is essential at every stage and pledged to ensure that anticipated revenues from offshore oil and gas projects benefit all Surinamese.
Insight
Geerlings‑Simons is signaling prudent economic management by linking future oil wealth to social development goals—an approach aimed at avoiding the pitfalls of resource-driven inequality and debt accumulation.
Mexico plans stronger trade collaboration with Canada after Trump tariff threats
On July 16, Mexican President Sheinbaum said she and Canadian PM Mark Carney plan deeper trade collaboration to counter U.S. tariffs set for August 1. They will align negotiation strategy, with Carney visiting Mexico and business leaders preparing U.S. investment plans .
Insight
Mexico and Canada are uniting to reinforce NAFTA/CUSMA ties as a strategic defense against U.S. tariff threats, signaling regional solidarity in trade diplomacy.
Brazil says it remains ready to engage in dialogue with the US on tariffs
Brazil’s government sent a letter to U.S. authorities expressing strong indignation over planned U.S. 50% tariffs effective August 1 and reaffirming its readiness to negotiate a “mutually acceptable” solution (Reuters).
Insight
Brazil is adopting a diplomatic tone, pushing dialogue as the preferred route to reduce tariff impacts on its economy and U.S.–Brazil trade relations.
