Last month, the trade dispute between China and United Stated took flight. It stemmed from the announcement made by President Trump that all aluminum and steel products from a number of countries including China will have additional tariffs. Over a week passed, China made their own announcement that selected products from the United States including wine and frozen pork will have tariffs. There are now uncertainties among Latin brides with businesses in Latin America since they are caught in the middle with advantages and disadvantages to weigh.
The trade war continues as China wants to impose tariffs on various American products such as cars, planes and soybeans. This is in answer to the demand of the United States that Chinese goods will have a tariff of $50 billion.
According to the Latin America and the World’s director, Margaret Myers, the United States’ actions are forcing them to pick a side between the two disputing countries. Countries on Latin America, on the other hand, are placed in awkward positions and they are to face a policy that is not entirely encouraging for them.
China is currently the leading trade partner of different countries in Latin America such as Brazil and Uruguay when it comes to raw materials. Brazil has the largest economy in the region and also leads the list of soybean exporters in the globe.
Argentina and Brazil should be happy with the chance to have a greater market share but these countries chose to tread the water carefully after the tariffs announcement. As of the moment, Argentina is on the third spot of the largest soy exporter in the world. it is still analyzing the current status of the trade dispute.
Analysts from these two countries said that the tariffs might impact the region because China will turn to South America to meet their country’s demand for soybeans and other products made of soy.
On the one hand, Washington is not happy upon hearing that some countries in Latin America are asking for financing help from China. The new trade policies will eventually shake the business of Latin brides but, as all other challenges, they will be able to weather it.