Mexican stocks fell 4.87% while Argentine stocks dropped over 7% amid fears of a trade war following U.S. tariffs. Mexico was excluded from Trump’s tariff list but still faced market panic. Argentina and Brazil were both hit with 10% tariffs, causing a significant decrease in their stock indices.
On Friday, Mexican stocks experienced a significant decline of 4.87 percent, largely influenced by global market turmoil following the onset of a trade war, despite Mexico being excluded from President Donald Trump’s list of tariffs. In contrast, Argentine stocks suffered even greater losses, plummeting by more than seven percent as the impact of Trump’s newly imposed import duties on Argentina became evident two days prior.
Interestingly, Mexico’s stock market had shown slight recovery with a modest increase of 0.54 percent on Thursday, reflecting a temporary relief after avoiding Trump’s “Liberation Day” tariffs, a term used to describe his trade action against some nations. However, this optimism was short-lived as Mexican stocks were swept along with the general downturn.
While Mexico managed to evade tariffs, both Argentina and Brazil—Latin America’s largest and third-largest economies, respectively—were not so fortunate. Argentina’s Merval Index recorded a steep fall of 7.38 percent, whereas Brazil’s Bovespa Index also fell by 2.96 percent, facing a 10 percent tariff on their exports, part of a broader spectrum of tariffs that could escalate up to 50 percent across the region.
The recent declines in Mexican and Argentine stock markets highlight the volatile impact of potential trade wars initiated by U.S. tariffs. Despite avoiding immediate tariffs, Mexico’s financial markets remain vulnerable amidst broader economic fears. In contrast, Argentina and Brazil have not escaped the repercussions, with significant impacts on their stock indices due to imposed tariffs, illustrating the precarious balance within the Latin American economies.
Original Source: tribune.net.ph
