The latest round of tariff hikes in the ongoing US-China trade war could have far-reaching impacts not only for big soy exporters Brazil and Argentina but throughout Latin America. The region’s initial opportunism is giving way to fears over instability and slower global growth.
On June 1 China suspended purchasing US soy in an escalation of the trade spat. The world’s largest buyer will look largely to Brazil to meet demand in a shift that could impact South American forests as the risk of protracted tensions bites.
After a year of tit-for-tat tariffs, the impacts on Latin American countries are starting to sink in. A report from the United Nations Conference on Trade and Development (UNCTAD) estimated a growth in exports for several countries in the region, including Mexico (5.8%), Brazil, (3.8%) and Argentina (2.4%).
