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Mexico, Brazil forge stronger trade alliance amid Trump tariff policy

The leaders of Latin America’s two largest economies, Mexican President Claudia Sheinbaum and Brazilian President Luiz Inácio Lula da Silva, announced plans to strengthen bilateral trade ties during a regional summit in Honduras.

The move comes as a direct response to the economic turbulence caused by US President Donald Trump’s unpredictable tariff policies and aggressive deportation measures. Lula stated that the two countries had “agreed to deepen cooperation between our governments and private sectors through regular high-level meetings.”

The summit, attended by 11 heads of state and 20 representatives from the Community of Latin American and Caribbean States (CELAC), highlighted growing concerns over Trump’s economic and foreign policies. While the US president temporarily suspended global tariffs for 90 days (excluding China, which faces increased 125% duties), the move has done little to ease tensions among traditional allies.

Sheinbaum also stressed the need for regional solidarity.

Today more than ever is a good time to recognise that Latin America and the Caribbean require unity and solidarity.

The sentiment reflects broader frustrations with Trump’s approach, including controversial deportation tactics and perceived violations of national sovereignty–such as recent discussions about potential US drone strikes against Mexican cartels, which Sheinbaum firmly rejected.

Mexico and Brazil, which together account for over 60% of Latin America’s GDP, aim to expand exchanges in agriculture, manufacturing, and technology. The partnership could serve as a counterbalance to US dominance, particularly as Trump’s policies continue to disrupt global supply chains.

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