Trump vs. Harris: Impact on Latin American Economies

The upcoming U.S. election between Harris and Trump could significantly affect Latin American economies. Trump's policies might increase volatility, especially with tariffs and trade wars, particularly impacting Mexico. A Harris victory could stabilize the region, lowering tariff risks and benefiting emerging market assets.

The upcoming U.S. election is a significant concern for Latin America, where markets are bracing for the potential impacts of either a Trump or Harris victory. Under Trump, policies could foster the return of economic volatility, especially in Mexico, with proposed tariffs stirring anxiety in emerging markets.

Trade, tariffs, and monetary policies are critical factors that could reshape U.S.-Latin America relations. While the Biden administration maintained some Trump-era tariffs on China, Harris seems less confrontational towards the world's second-largest economy, promising a more consistent approach.

The stakes are high for Latin America's largest economies, like Mexico and Brazil, as tariffs and trade tensions loom. A Trump win could escalate global inflation and interest rates, impacting Latin American assets. Alternatively, a Harris presidency might provide relief, enhancing conditions for emerging market assets.

(With inputs from agencies.)