Market Turbulence: Mexican and Argentine Stocks Collapse Amid U.S. Tariffs
Mexican stocks fell 4.87% amid global market panic over trade war fears. Argentina’s stocks dropped over 7% following Trump’s import tariffs. Brazil’s Bovespa Index lost 2.96%. Both Argentina and Brazil faced tariffs of 10%, contributing to significant market downturns.
On a recent Friday, Mexican stocks experienced a significant decline of 4.87 percent, despite not being included in U.S. President Donald Trump’s tariff list. This drop was attributed to widespread panic in global markets amid fears of a looming trade war.
Argentina’s stock market was even harder hit, falling over seven percent on the same day, following Trump’s announcement of broad import tariffs affecting numerous nations, including Argentina.
While Mexican stocks had shown a slight increase of 0.54 percent on Thursday, indicating initial optimism in Mexico, the subsequent sell-off reflected a shift in sentiment. In contrast, Brazil, Latin America’s largest economy, and Argentina were both adversely affected by the new tariffs, with Argentina’s Merval Index decreasing by 7.38 percent and Brazil’s Bovespa Index shedding 2.96 percent.
Both Argentina and Brazil faced a 10 percent tariff, which was relatively low compared to rates that could reach 50 percent affecting various other nations. This scenario emphasizes the fragile state of Latin America’s economies in the face of U.S. trade policies.
The article underscores the severe impact of U.S. tariffs on Latin American stock markets, particularly in Mexico and Argentina. While Mexico initially avoided tariffs, panic fueled a significant stock market drop. Argentina experienced even greater losses, highlighting the vulnerability of these economies in an escalating trade war. Overall, the financial turbulence of these countries illustrates the global ramifications of U.S. trade decisions.
Original Source: tribune.net.ph
