The recent U.S. tariffs imposed on Canada, Mexico, and China are significantly altering international trade patterns. This situation positions Latin American (LatAm) economies to seize emerging export opportunities, as outlined by Bank of America (BofA).

Who Will Benefit?

Short-Term Winners:

Brazil: Looks set to redirect agricultural and oil exports toward the U.S.

Central America & Caribbean (CAC): Likely gains in light manufacturing, food, and semiconductor chips.

Long-Term Supply Chain Adjustments:

Panama, Chile, and Costa Rica hold strong positions for supply chain relocations as manufacturers seek alternatives.

On the other hand, Paraguay, Uruguay, and El Salvador are well-positioned to benefit from broadened trade diversification.

Overview of U.S. Tariffs

Canada & Mexico: face a 25% tariff (with an exception of 10% on Canadian energy, currently delayed).
China: implements a 10% tariff effective February 3, 2025.

BofA cautions that while the 25% tariffs may be brief, the uncertainty that surrounds them could lead to lasting changes in supply chain dynamics.

For ongoing updates on global trade developments, visit: Entreprenerdly.com