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. If the US stock market reacted positively following Trump’s victory, it did not go as well for LatAm countries. Mexico’s position seems the most vulnerable, being the country with which the US has one of the strongest deficit in this region. The US monetary policy will further increase the difficulty for LatAm countries to deal with the US, should they not answer correctly.
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