RSM leaders discuss Latin America’s future: economic growth, tariffs and trade
At the Latin America Regional Conference, held in Santiago from 9-12 June, RSM brought together leaders from its member firms around the continent to discuss the region’s economic growth and future.
The conference was held against the backdrop of the US raising its average tariff rate to 15.6%, prompting concerns over long-term disruption to Latin America’s export flows.
RSM’s Chief Economist in the US, Joe Brusuelas, said that the move by President Donald Trump marks a structural shift in global trade policy. “The US is moving decisively towards protectionism,” said Brusuelas. “With an effective tariff rate now at 15.6% – the highest since 1930 – we are witnessing a structural shift in trade policy. This will push Latin American economies to diversify away from US markets and align more closely with China and Europe.”
“The consequences for the region’s exporters could be significant. As global trade realigns, countries like Brazil, Colombia, Chile and Peru are stepping into a more prominent role, particularly in agriculture and commodities, as China and other partners look to Latin America to fill the gap left by U.S. protectionism.”
Annual real GDP growth and IMF projections set out that both the US and Latin American economies are projected to grow at a 2% pace for the next six years.
While global growth is projected to remain at 3.3% in 2025, Brusuelas emphasised that countries unable to diversify trade relationships may face prolonged headwinds due to rising US tariffs and a weakening dollar.
“This is a moment of strategic choice for Latin America,” Brusuelas concluded. “As the US steps back, the region must step forward – diversifying partnerships, strengthening intra-regional trade and repositioning itself in global value chains.”
More than 120 RSM leaders attended the three-day conference, joining sessions focused on M&A activity in Latin America, the impact of tax reforms on the region and artificial intelligence implementation and development.
Ernest Nedder, Chief Executive Officer of RSM, said: “As the global economy undergoes a fundamental rebalancing, Latin America is emerging as a region of growing strategic importance. This year’s conference in Santiago has been an opportunity to strengthen collaboration across our network and reaffirm our commitment to helping clients adapt to changing trade dynamics, regulatory complexity and investment flows.”
Eileen Turkot, Regional Leader for Latin America at RSM, added: “The conversations taking place this week have underlined how business leaders across Latin America are actively engaging with the challenges and opportunities shaping the region - from shifting trade flows to the implications of political volatility. It’s clear that nearshoring, ESG, and regulatory change are no longer abstract trends but immediate strategic considerations.”
“What’s been most valuable is the shared willingness to analyse these dynamics openly and consider how best to respond in a region where the pace of change is accelerating.”
