Brazilian automakers are facing the prospect of a sharp drop in exports this year as a crisis in neighboring Argentina hampers the prospects of car sales abroad, the national automakers’ association said on Friday.
European Union on Monday slammed the Trump administration for considering tariffs on auto imports, saying they could lead to global retaliation against some US$ 300 billion in U.S. goods amid signs of a brewing trade war.
Brazil's industrial output fell 6.9% in June compared to the same month last year, mostly due to a contraction of the automobile industry, reported the official stats office last Friday.
Argentina's economic activity jumped 7.8% in May from a year earlier, according to the country’s questioned stats office, Indec. President Cristina Fernandez had anticipated the news earlier in the week in a televised speech.
Mexico has withdrawn a zero-tariff agreement with Argentina on autos in a tit-for-tat trade dispute after the Argentine government's decision to pull out of an auto trade pact between the two countries.