Mercosur

Uruguay's new President Yamandú Orsi has also said that Trump's tariffs are helping to push a trade deal between the EU and South America's bloc, Mercosur, closer to reality.

The Mercosur nations—Brazil, Argentina, Uruguay, and Paraguay—signed an agreement with the EU.

He points out that under the agreement the Mercosur nations would still have limits on what they can export to the EU.

Prof Dadush adds that "the deal is an opportunity to push for much needed market-orientated reform in the heavily-subsidised EU agricultural sector, and Mercosur's highly-protected factory sector".

He adds that it will also improve health and environmental standards in the Mercosur countries, and increase ties with the EU at a time when "China is also trying to get a foothold in Latin America".