Latin America News
LAST UPDATE: July 18, 2025
Brazil’s Lula says he won’t take orders from ‘gringo’ Trump
Brazilian President Lula rebuked U.S. President Trump’s 50% tariffs on Brazilian goods set for August, declaring “no gringo is going to give orders to this president.” Lula defended sovereignty, suggested taxing U.S. tech firms, and remains open to negotiations .
Insight
Lula leverages nationalist messaging to solidify domestic support while retaining diplomatic channels. His stance suggests a readiness for reciprocal tariffs if U.S. measures escalate.
Brazil’s Bolsonaro Touts Wife’s Senate Bid Amid Presidential Speculation
Former President Jair Bolsonaro is promoting his wife’s Senate campaign, fueling speculation she could position themselves for a political comeback, possibly even shifting back into presidential contention .
Insight
Bolsonaro appears to be building a political dynasty. His wife Michelle’s senate bid may serve as a strategic platform to maintain influence and prepare for the 2026 presidential cycle.
Petrobras may redirect oil to Asia due to US tariff on Brazil, CEO says
Petrobras CEO Magda Chambriard said the state oil firm may reroute oil exports from the U.S. to Asia and Pacific due to a looming 50% U.S. tariff. Only ~4% of Petrobras’ oil currently goes to the U.S., so the firm isn’t greatly concerned .
Insight
This redirection reflects Brazil’s agility in shifting export markets. While U.S. demand is modest, the move could increase Petrobras’ exposure to Asia, diversifying revenue streams.
Chile will hold meeting with copper industry next Tuesday to discuss US tariffs, minister says
Chile’s Mining Minister Aurora Williams announced a meeting next Tuesday with the copper industry to assess ramifications from proposed U.S. tariffs on copper .
Insight
Chile’s proactive engagement signals concern over potential U.S. trade actions targeting key copper exports. The meeting aims to coordinate industry responses and explore market diversification strategies.
Latin America’s foreign direct investment rose 7% last year, but new flows stagnate
FDI in Latin America grew 7.1% in 2024 to $189 billion (13.7% of gross fixed capital formation), led by Brazil and Mexico. But new investment flows have stagnated, raising long-term competitiveness concerns .
Insight
While reinvested earnings from existing firms drive FDI growth, the stagnation of new capital inflows signals investor caution—especially amid global trade shifts and uncertain U.S. policy. Governments face pressure to enact reforms and incentives.
Canada Finance Chief Downplays Odds of Reaching Tariff-Free Deal with US
Canada’s Finance Minister Champagne downplayed chances of a tariff-free U.S. trade deal, stating there’s no evidence for it. He noted that dairy and poultry protections remain non-negotiable .
Insight
Canada appears to be recalibrating expectations, preparing for a trade agreement that includes some tariffs. Defensive stance on supply-managed sectors could complicate talks.
Rodrigo Valdés appointed Director of IMF’s Fiscal Affairs Dept – first Latin American in 60 years
The IMF announced on July 17, 2025, that Rodrigo Valdés will become Director of its Fiscal Affairs Department (FAD) starting October 27, 2025—marking the first time in six decades that a Latin American will head the department (IMF, Jornal de Brasília).
Insight
This is a landmark appointment: elevating regional representation from emerging markets to a traditionally Western-led department. Valdés’ expertise, particularly from his work in the Western Hemisphere, may bring policy perspectives better tailored to global south economies.
IMF maintains Brazil’s GDP growth forecast at 2.3% this year
The IMF reaffirmed its 2025 forecast for Brazil’s GDP growth at 2.3%, noting that economic normalization, including VAT reforms and monetary policy shifts, underpin this outlook .
Insight
Consistent projections suggest optimism in macroeconomic stability. However, maintaining mid-2025 growth at 2.3% signals cautious long-term expectations, with structure-dependent reforms like VAT remaining critical.
