Trump’s Biggest Tariffs Yet Hit Latin America
Trump’s Biggest Tariffs Yet Hit Latin America
The region has avoided the worst-case scenario so far, but reciprocal duties will still hurt.
Brazilian President Luiz Inácio Lula da Silva talks with Brazilian Vice President Geraldo Alckmin at Planalto Palace in Brasília on Jan. 29. Andressa Anholete/Getty Images
Many Latin American officials watched U.S. President Donald Trump’s tariff announcement on Wednesday with bewilderment. Trump plans to hit all countries with baseline 10 percent duties, but around 60 trade partners will face even higher rates. The Trump administration calculated the so-called reciprocal tariff rate based on the U.S. trade deficit with each country.
Countries that have tried to get close to Trump generally received no special treatment. Right-wing Argentine President Javier Milei has tilted his foreign policy toward the United States, even proposing a bilateral trade deal to Trump advisors. But Argentina was hit with the same tariff rate as Brazil, which has a left-leaning government and which Trump has criticized for protectionism.
Many Latin American officials watched U.S. President Donald Trump’s tariff announcement on Wednesday with bewilderment. Trump plans to hit all countries with baseline 10 percent duties, but around 60 trade partners will face even higher rates. The Trump administration calculated the so-called reciprocal tariff rate based on the U.S. trade deficit with each country.
Countries that have tried to get close to Trump generally received no special treatment. Right-wing Argentine President Javier Milei has tilted his foreign policy toward the United States, even proposing a bilateral trade deal to Trump advisors. But Argentina was hit with the same tariff rate as Brazil, which has a left-leaning government and which Trump has criticized for protectionism.
The United States has a trade surplus with both Argentina and Brazil, so they each received the minimum 10 percent rate. Other large Latin American economies such as Chile, Colombia, and Peru also face 10 percent tariffs, lower than the new duties of upward of 20 percent and 30 percent that Washington slapped on major trading partners in Europe and Asia.
Read more in today’s Latin America Brief: What Trump’s Latest Tariffs Mean for Latin America
This post is part of FP’s ongoing coverage of the Trump administration. Follow along here.
Catherine Osborn is the writer of Foreign Policy’s weekly Latin America Brief. She is a print and radio journalist based in Rio de Janeiro. X: @cculbertosborn
Read More
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Trump’s Tariffs Hit Even Remote Islands
The sweeping levies announced Wednesday will reach unexpected corners of the world.
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