Washington, D.C. - Former U.S. President Donald Trump's protectionist trade policies are drawing parallels to Latin American economic strategies of the mid-20th century. Trump's emphasis on protecting U.S. manufacturing through tariffs mirrors the import substitution industrialization (ISI) policies of leaders like Juan Perón of Argentina and Getúlio Vargas of Brazil.
Trump declared an "economic independence" similar to Perón's 1947 declaration. Both used tariffs to boost domestic industries. Vargas employed legal tools to encourage foreign companies to establish factories locally. Experts warn that such policies, while aiming for self-sufficiency, can lead to negative consequences, including inflation and reduced export capacity.
The Organization for Economic Cooperation and Development (OECD) projects a slower U.S. GDP growth this year due to Trump's trade policies. Economists caution that these measures could increase inflation and harm the very sectors they intend to protect, echoing the experiences of Latin American countries.