Latin America News
LAST UPDATE: August 1, 2025
IMF Approves $2 Billion Argentina Disbursement as Peso Falls
The IMF’s executive board approved a $2 billion disbursement to Argentina under its extended fund facility on July 31, 2025, despite the government missing a mid-June reserve accumulation target, marking a vote of confidence amid peso weakness (Bloomberg.com).
Insight
The fresh funding will provide critical liquidity support for Argentina’s strained finances, but the missed reserve target underscores the need for stricter fiscal discipline and structural reforms to stabilize the currency and restore investor trust (Bloomberg.com).
Trump Raises Tariffs on Canada to 35%, Keeps USMCA Exemption
President Trump announced a 35 % tariff on selected Canadian imports—up from 25 %—while maintaining USMCA exemptions, escalating tensions between the U.S. and its second-largest trading partner (Bloomberg.com).
Insight
The tariff hike reinforces a hardline U.S. trade posture that could trigger Canadian retaliatory measures and disrupt cross-border supply chains; although USMCA exemptions soften some impacts, businesses should prepare for potential regulatory and diplomatic fallout (Bloomberg.com).
Trump says Canadian plan to recognize Palestinian state not a deal breaker in trade
President Trump said he did not like Canada’s plans to recognize the State of Palestine but added it was “not a deal breaker” for ongoing trade talks with Ottawa (TradingView).
Insight
By downplaying the impact of Canada’s Palestinian recognition on trade negotiations, Trump signaled a willingness to compartmentalize foreign policy disputes to preserve economic engagement, potentially smoothing the path for further dialogue (TradingView).
Canada PM says ‘disappointed’ by new US tariffs
Prime Minister Mark Carney said his government was “disappointed” after President Trump raised U.S. tariffs on Canadian goods from 25 % to 35 %, despite Canada’s cooperation on security and fentanyl controls (Le Monde.fr).
Insight
Carney’s public expression of disappointment highlights Canada’s diplomatic tightrope between security collaboration and economic defense, signaling that Ottawa may consider measured retaliatory options if tariff tensions persist (Le Monde.fr).
Brazilian companies react to Trump’s tariffs with relief and doubt
Brazilian firms welcomed nearly 700 exemptions to the 50 % U.S. tariff on their exports—covering aircraft, iron ore and orange juice—while lamenting the exclusion of coffee and beef, which account for about 35.9 % of U.S.-bound Brazilian sales (Reuters).
Insight
The targeted exemptions offer relief to key industrial exporters but leave agricultural producers exposed, underscoring the need for Brazil to negotiate commodity-specific carve-outs to protect vital rural employment and export earnings (Reuters).
El Salvador Congress Approves Unlimited Presidential Reelection
El Salvador’s Congress approved constitutional amendments to permit President Nayib Bukele to seek unlimited reelection, extend presidential terms to six years and allow early polls, passing the measure 57-3 in its initial vote (Bloomberg.com).
Insight
The change consolidates power in Bukele’s hands and raises alarms over weakening checks and balances, yet it may also reflect strong public support for his agenda and an appetite for political continuity amid national challenges (Bloomberg.com).
