A survey by Moody’s with about 3,500 non-financial companies with rating worldwide shows that Latin American companies face greater exposure to US tariff risks than Asia-Pacific and European peers. They are less impacted than their American counterparts, however.
The exhibition was classified as high, moderate or low, based on three channels: trade, macroeconomic conditions and financial markets.
According to the report, tariff -related risks would have limited effects on the quality of credit of most non -financial companies in Latin America with rating. Only 9% of them are exposed directly to trade, while 21% has high exposure to macroeconomic shocks and 10% high exposure to financial market volatility.
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In this scenario, Mexico, Brazil and Chile are the main impacted. The two countries were imposed on the largest rates of tariffs by President Donald Trump in the region, 30% and 50%, respectively.
According to Moody’s, Mexico has the highest exposure to US tensions, with 76% of exports going to the neighboring country. Automotive and energy sectors are the two with the highest risk related to trade with the US. In the case of Brazil, the aviation, automotive, chemical and metals and mining sectors.
Mexico, however, has managed to extend the implementation of the new value for 90 days while negotiating an agreement and has variable rates per product, including some exemptions, 10% for potassium, 50% for steel and aluminum and a 25% base for others.
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In the case of Brazil, but almost 700 items have entered an exception list, including aircraft and its pieces, oil and orange juice. Chile stands out for its high macroeconomic exposure, especially in the metal, chemicals and forest products.
“Companies with high exposure include several sectors, including the Mexican group of Mining Fresnillo, the Brazilian Aerospace Sector manufacturer Embraer and the Peru -producer Camposol do Peru,” says the report about companies in the region. Embraer, however,.
