The broad-based falls shown in the CPI figures for June suggest that the inflation picture in Latin America has become a bit better, supporting our view that central banks in many places will deliver more easing than most are currently expecting. Meanwhile, Latin America found itself in Trump's firing line this week. Copper tariffs will add an additional headwind to Chile's mining sector while Brazil was threatened with a 50% tariff, which could shave perhaps 0.5% off its GDP. And the political nature of the Brazil tariff threat suggests that it may be hard to find an off-ramp.
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