USMCA, Kast’s fiscal plans, BCB to cut rates

Comments from US Trade Representative Jamieson Greer this week suggest seem to have dashed Mexico’s hopes of removing tariffs on autos, exports of which have been struggling. There are also suggestions of greater local content requirements – one key area to watch is what happens to AI-related products, which have been a key prop to Mexico’s exports. Elsewhere, the Kast administration in Chile outlined tax cuts this week, which will widen the budget deficit – contrary to the government’s goal of reining it in. Finally, Brazil's central bank should have room to continue its easing cycle, with a 25bp cut to 14.50%, next week.