Argentina: With President Trump's victory, tax withholdings are a bigger threat, says Enrique Erize

Published Nov 10, 2024

Tridge summary

Enrique Erize, president of the consulting firm Nóvitas, shares his insights on the potential impact of Donald Trump's presidency on Argentine agribusiness. Despite protectionist policies, which could negatively affect trade with the US, particularly in steel and biodiesel, Erize remains optimistic about soybean prices. He emphasizes concerns over the abundance in the global market and the potential effects of Federal Reserve rate cuts on the dollar and commodity markets. Additionally, he discusses the challenges of Argentina's full dollarization, which prevents devaluation and increases costs for farmers. As the US, Brazil, and possibly Argentina achieve record soybean volumes, Erize calls for government strategy adjustments to address potential price drops and maintain market balance.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

To one of the first questions that Trump's victory in the North American elections generated, about the possible impact on Argentine agribusiness, the specialist Enrique Erize, president of the consulting firm Nóvitas, responded bluntly: "it is accidental and it does not change the lives of our markets." Although any analysis that is done now "is very preliminary," the protectionist policies that the Republican is expected to apply, as he did in his first term, have taken a backseat. What is truly worrying, he said, is the price of the next Argentine soybean harvest, in a global market with an abundance of merchandise. One of the certainties about Trump, said Erize, is that "he will probably lead a very protectionist economy; that is a problem for all the countries that trade with the US. Argentina could suffer a loss there." He recalled that this has already happened with steel and biodiesel. The other possibility is that the rate cuts that the Federal Reserve had been ...

Source: Agromeat