Latin America News
LAST UPDATE: August 29, 2025
Brazil starts formal process to assess US tariff retaliation, say sources
Brazil’s trade authority Camex has initiated a 30-day review to consider reciprocal action against new U.S. tariffs. President Lula authorized use of a reciprocity law to determine targeted countermeasures, with the U.S. expected to be notified soon.
Insight
This legal escalation marks a shift from negotiation to structured retaliation, illustrating Brazil’s determination to defend its exporters while balancing trade diplomacy.
Brazil readies updated sector trade deals with Mexico
Vice President Alckmin announced plans to sign sector-specific agreements with Mexico in August 2026, focusing on agriculture, health, biofuels, and possibly EV battery production, bypassing broader Mercosur-wide negotiations.
Insight
This strategic pivot suggests a pragmatic, sector-by-sector approach to regional trade integration, enabling progress despite the challenges of larger bloc-level alignment.
US top diplomat Rubio to visit Mexico and Ecuador next week
Secretary of State Marco Rubio will visit Mexico and Ecuador to coordinate efforts on curbing illegal immigration, combating drug cartels, and countering Chinese influence in Latin America.
Insight
Rubio’s visits reflect a deepened U.S. focus on hemispheric diplomacy, intertwining security, migration, and geopolitical strategy amid rising competition with China.
Canada struggles to ease Trump tariffs despite Carney concessions
Despite Prime Minister Carney easing retaliatory tariffs and removing a digital services tax, Canada failed to secure tariff relief from the U.S., particularly in steel, autos, and lumber sectors. Business concerns over unresolved trade barriers persist.
Insight
Canada’s conciliatory posture has not delivered the expected U.S. reciprocity, highlighting Ottawa’s vulnerability and the limits of diplomacy under protectionist U.S. trade policy.
