News & Publications
Economic Publications

Latin America: The winners and losers of “Trumponomics”

Latin America - Trumponomics

Political changes in the US have caused uncertainty over the trade policies that could be implemented and the region’s vulnerability to tighter financial conditions. Since Donald Trump’s victory, the currencies of many emerging countries have fallen against the dollar. Mexico’s currency was the most greatly affected in the world, with 19 % depreciation against the USD in 2016. This is the country’s worst depreciation since the Tequila crisis in 1994. By contrast, the US stock market reacted positively following Trump’s victory announcement.


On the trade side, the possible application of import tariffs would potentially affect manufactured products. The position of Central American countries (Honduras, El Salvador and Costa Rica), as well as Mexico, is particularly sensitive (given their trade exposure to the US, which is mainly focused on manufactured goods). In addition to having large exposure to the US, the GDPs of these countries are more dependent on exports than they are for other countries in the region.

Download this publication : Latin America: The winners and losers of “Trumponomics” (698.04 kB)



Marketing and Communication
T : +27 (0) 11 244 9312