Mexican stocks fell 4.87% amidst global market panic over trade wars, while Argentine stocks plummeted more than 7% after Trump imposed import duties. Brazil also faced losses due to similar tariffs. Despite Mexico initially avoiding tariffs, stock volatility ensued, reflecting broader market concerns.
On Friday, Mexican stocks experienced a drastic decline of 4.87 percent, despite the country being omitted from United States President Donald Trump’s list of reciprocal tariffs. This downturn was attributed to widespread panic in global markets regarding the onset of a potential trade war. In contrast, Argentina faced an even steeper decline, with its stocks plummeting over seven percent on the same day, following Trump’s recent imposition of substantial import duties on numerous nations, including Argentina.
Mexican stocks had shown modest recovery, increasing by 0.54 percent on Thursday, initially reflecting relief in the second-largest economy in Latin America for avoiding what has been referred to as “Liberation Day” tariffs. Nonetheless, this brief respite was overshadowed by Friday’s sharp drop in stock prices, indicating ongoing market volatility.
In stark contrast to Mexico’s situation, both Brazil and Argentina were not spared from the tariffs. Argentina’s Merval Index recorded a significant decline of 7.38 percent, while Brazil’s Bovespa Index fell by 2.96 percent. These countries faced a punitive 10 percent tariff as part of a broader spectrum of tariffs imposed on countries across Latin America, which range upwards to 50 percent.
In summary, Mexican and Argentine stocks are facing severe drops amid fears of an escalating trade war initiated by U.S. tariffs. Despite Mexico’s initial relief after avoiding certain tariffs, its stocks plummeted afterward. Meanwhile, Argentina, along with Brazil, suffered significant market losses due to the application of new tariffs, indicating the widespread economic implications of these trade policies.
Original Source: tribune.net.ph
