IMF Warns About Impact of Trump’s Tariffs on Latin America

• IMF Warns About Tariff Impact
• Regional Growth Slows Down
• Mexico and Brazil Most Affected

The International Monetary Fund (IMF) warned this Friday that tariffs imposed by U.S. President Donald Trump could have even greater indirect effects on Latin America.

The warning was issued during a press conference held by Rodrigo Valdés, Director of the IMF’s Western Hemisphere Department, during the spring meetings hosted jointly with the World Bank in Washington.

In its latest World Economic Outlook (WEO) report, published last Tuesday, the Fund projected a slowdown in the region’s economic growth.

According to the document, growth is expected to decline from 2.4% in 2024 to 2% in 2025.

IMF Warns About the Blow of Trump’s Tariffs on Latin America

#Finance ? | The IMF warns that #tariffs could have greater indirect effects on #LatinAmerica https://t.co/5Pso5ziadihttps://t.co/5Pso5ziadi

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These new forecasts reflect a less optimistic outlook compared to January, when a 2.5% growth was anticipated.

According to the report, the region is expected to return to a 2.4% growth rate by 2026, although this figure is three-tenths lower than previously estimated.

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Nonetheless, the IMF warned that the slowdown will not impact all Latin American countries uniformly.

Specifically, Mexico will experience a decrease in its Gross Domestic Product due, in part, to the impact of the new tariffs.

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Brazil, meanwhile, will undergo a significant economic moderation as a result of tighter monetary and fiscal policies.

In contrast, Argentina and Ecuador are expected to show notable recoveries thanks to IMF-supported economic programs.

Valdés attributed the slowdown to factors such as «the global growth slowdown, heightened uncertainty, the impact of tariffs, and tighter domestic policies in some countries.»

During his remarks, he especially congratulated Suriname for successfully completing the latest review of its IMF program.

Additionally, Ana Corbacho, Deputy Director of the Western Hemisphere Department, highlighted Guyana as «the fastest-growing economy in the world.»

«In a world marked by uncertainty, it is necessary to strengthen macroeconomic frameworks and increase resilience and growth opportunities,» Valdés emphasized.

The press conference took place amid a partial truce in the trade war fueled by Washington.

On April 9, President Trump announced a 90-day pause in the application of additional tariffs that he had proposed days earlier.

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However, the global 10% tariff remains in place, as does the 145% tariff on Chinese products, which was not included in the recent sanction reductions.

The IMF warned that these tariffs could still have serious economic repercussions for Latin America.

In this regard, Valdés stressed that the escalation of trade tensions and the persistence of protectionist policies pose an ongoing risk for emerging economies.

The uncertainty stemming from these policies, he noted, negatively affects both investment and international trade.

Based on information from EFE and Infobae.