Brazil & Southern Cone - August 2026

This August edition of the Latin American Regional Report: Brazil & Southern Cone begins with an analysis of the US tariffs on Brazil that took effect in July. The Office of the US Trade Representative (USTR) first imposed a 25% tariff due to claims that Brazil had carried out unfair trade practices, later imposing another tariff on dozens of countries, including Brazil, due to claims of ineffective enforcement of rules against forced labour. With thousands of goods expected to be affected by the tariffs, the Brazilian government and businesses have been seeking to mitigate the impact.

The next piece looks at concerns over possible corruption in Brazil’s Rio de Janeiro state. Since taking over in March as Rio’s interim governor, Ricardo Couto has sought to address alleged corruption in state government institutions that occurred during the administration of former governor Cláudio Castro (2021-2026), who himself has been implicated in various corruption probes.

Moving on to neighbouring Argentina, the following article also focuses on concerns over alleged corruption. Manuel Adorni, a close ally of President Javier Milei who served as both presidential spokesperson and later as cabinet chief, has stepped down from government after months of pressure due to an illicit enrichment scandal. The media had reported on several suspicious activities such as lavish trips and expensive property purchases that a public official like Adorni would be unlikely to afford, which has undermined Milei’s anti-establishment image and anti-corruption rhetoric.

Still focusing on Argentina, the next article considers a financial programme unveiled by the Milei government to convince investors that the government can meet all its foreign-currency debt obligations without issuing new debt in international capital markets. The announcement was aimed at calming nerves ahead of foreign-currency financing needs through the end of next year.

We then move to a piece that takes a regional outlook, analysing the calls for transnational security cooperation at the latest leaders’ summit of the Mercosur trade bloc. Although the bloc was originally founded primarily with economic objectives in mind, the gathering of regional leaders in Paraguay featured a strong emphasis on security, given that fighting crime has become an increasingly prominent political priority in countries throughout the region. The final piece in this edition looks at the efforts by various governments in South America to deregulate the aviation sector, with authorities from Brazil, Argentina, Chile, and Paraguay signing an agreement that committed to work towards aligning aviation rules and gradually loosen restrictions.