Seismic waves in global trade

Summary

Recent weeks have seen an escalation of restrictive measures and trade retaliation between the US and China, as well as restrictions placed on the activity and investment of foreign technology companies in domestic markets or the announcement of further tariffs imposed by the US to Mexico.

Key points

• Key points:
• The effects of trade disputes spread throughout the global economy. The impacts are uncertain due to the lack of recent information on similar situations, the multitude of geographies, products and types of barriers that can be established, and the overall effect of deteriorating trust and the reaction of financial markets.
• The Latin American economy as a whole and in particular the Peruvian economy, are good examples of areas not directly involved in the trade war, but whose strengths and weaknesses will be tested by its effects.

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