Latin America News
LAST UPDATE: July 23, 2025
Carney Tempers Trade Expectations, Says Canada Won’t Sign a Bad Deal
Prime Minister Mark Carney cautioned that Canada won’t accept any trade deal with the U.S. that is not beneficial, and he is tempering expectations for a quick deal ahead of the August 1 Trump tariff deadline (Bloomberg Law, ポリティコ).
Insight
Carney’s stance reflects growing domestic pressure to prioritize long-term economic benefits over meeting the U.S. self-imposed deadline, even as tariff threats loom.
Ontario Premier Says Electricity Export Tax Is Possible If Trade Talks Fail
Ontario Premier Doug Ford warned that the province may impose a surcharge or tax on electricity exports to U.S. states if federal trade negotiations with the U.S. falter (news.bloombergtax.com, Bloomberg.com).
Insight
Ford’s threat to tax power exports adds leverage in federal negotiations, underscoring the provincial stakes and potential for intra-national discord if Canada–U.S. deals collapse.
Brazil may support sectors hit by steeper US tariffs, says official
Brazil’s finance ministry said the government may offer assistance to industries affected by new 50% U.S. tariffs, aiming to minimize fiscal impact (TradingView).
Insight
This indicates proactive fiscal preparedness—but also a sign of concern about the potential industrial slowdown and political need to support affected regions.
Brazil Reduces Spending Freeze After Lula’s Tax Plan Upheld
Following a Supreme Court decision affirming its tax reform, Brazil’s government relaxed its spending freeze from 31.3 billion reais to 10.7 billion reais (Bloomberg.com, Bloomberg Law, Reuters).
Insight
The eased fiscal constraints reflect improved revenue forecasts and court approval, but also signal renewed scrutiny of Lula’s broader tax agenda amid inflation concerns.
Paraguay Holds Key Rate at 6% After Lifting CPI, Growth Outlook
Paraguay’s central bank kept its benchmark rate at 6%, citing elevated inflation and improved growth prospects (Bloomberg.com, X (formerly Twitter), Trading Economics).
Insight
The unchanged rate reflects caution amid rising inflation and growth forecasts; it signals policy restraint to balance economic momentum with price stability.
