Latin America News
LAST UPDATE: July 29, 2025
Canada PM Carney Says There’s a ‘Landing Zone’ for U.S.-Canada Tariff Deal
Canadian Prime Minister Mark Carney said trade negotiations with the U.S. are in an “intense phase,” and that a compromise or “landing zone” may exist.
Insight
Carney’s framing of a “landing zone” reflects pragmatic diplomacy aimed at preventing a sharp escalation while securing long‑term stability. The acknowledgment that tariffs are likely sets realistic expectations for domestic stakeholders.
Canada Wholesale Sales Estimated to Have Risen 0.7% in June
Canadian wholesale sales are estimated to have increased by 0.7% in June, suggesting resilient domestic demand and distribution activity during the contentious U.S. trade negotiation period.
Insight
Rising wholesale activity provides some buffer against external trade shocks, indicating internal economic momentum. Still, trade tensions with the U.S. could undermine retail and export sectors if unresolved.
Brazil bank lending slows, default rate hits highest since 2018
In June, credit growth in Brazil decelerated and the default rate on non-earmarked loans climbed to levels unseen since 2018.
Insight
The combination of slower lending and rising defaults underscores mounting strain in Brazil’s financial system. Elevated rates are intended to curb inflation but also threaten credit access for firms and consumers.
Brazil’s public debt up 2.77% in June
Brazil’s federal gross public debt rose 2.77% month-over-month in June, reaching 7.883 trillion reais (~US $1.41 trillion).
Insight
The sharp monthly rise reflects rising borrowing costs and interest obligations amid tight fiscal conditions. It intensifies concerns about long-term debt sustainability, especially with projections of further increases.
Argentine markets climb on agricultural tax cuts, anticipated IMF disbursement
Argentine equity markets rose after the government announced cuts to export taxes on meat and grain, and markets anticipated a $2 billion IMF disbursement tied to the $20 billion loan program.
Insight
The combination of tax relief and imminent IMF funds boosts market confidence and provides fiscal breathing room. However, political uncertainties ahead of October midterms could challenge reform continuity.
Chile Seeks Copper Tariff Exemption as Talks Begin in Washington
Chilean officials aim to secure exemption for copper from planned U.S. tariffs in ongoing trade discussions.
Insight
As the world’s largest copper exporter to the U.S., Chile’s move reflects both economic necessity and strategic leverage. Bundling copper tariffs into broader talks may preserve market access and avoid piecemeal exclusion of its major exports.
Chile will ask U.S. to include copper within U.S.-Chile trade deal
In Washington’s second round of trade talks this week, Chile told negotiators it expects discussions on copper tariffs to be part of a comprehensive trade deal.
Insight
Chile’s insistence on integrating its copper sector in broader trade talks signals a strategic posture to avoid marginalization. It highlights copper’s centrality to the Chile‑U.S. trade relationship.
Honduras Presidential Rival Vows to Embrace US, Rebuff China
Opposition candidate Nasry Asfura pledged to deepen ties with the U.S., restore relations with Taiwan, and counterbalance Chinese influence if elected.
Insight
Asfura’s positioning underscores Central America’s geopolitical competition—Honduras may pivot toward U.S. alignment as part of broader democratic and regional strategic shifts.
