The new Trump Era: An opportunity for Europe and Latin America
 

Donald Trump’s return to the US presidency marks a new cycle in the global economy and politics. With more solid control over Congress and the Supreme Court, with a more loyal and committed team, and with the advantage of previous experience, Trump has made clear his objective of relaunching the US economy and strengthening its international influence.

This scenario, far from representing an obstacle for Europe and Latin America, should be seen as a unique opportunity to redefine their economic strategies, accelerate their digital transformation and consolidate themselves as more competitive global players.

The US as a catalyst for change in Europe and Latin America

Historically, major changes in the United States have had repercussions all over the world. The new Trump administration, with its focus on reindustrialisation, strengthening of the private sector and a more protectionist trade policy, represents a wake-up call for other regions to adjust their economic models and reduce their external dependencies.

In the last 20 years, the United States has experienced more dynamic economic growth than Europe and Latin America. In 2003, the US GDP was approximately 11.5 trillion dollars, while that of the European Union was around 10 trillion dollars.

By 2023, the US GDP exceeded 26 trillion dollars, while that of the EU reached 19 trillion dollars, evidencing a growing gap. Latin America, for its part, has had more unstable growth, with cyclical crises that have slowed its sustained development.

This context should be an incentive for Europe and Latin America to reinvent themselves and take advantage of this situation as a turning point to modernise their economies and gain global relevance.

Digital transformation and artificial intelligence as growth accelerators

One of the key drivers of economic growth in the United States has been its leadership in technology, digitisation and artificial intelligence (AI).

Companies such as OpenAI, Microsoft, Google and Amazon have driven advances in automation, data analysis and digital services that have increased productivity and efficiency in multiple sectors.

Europe, in contrast, has been more conservative in its approach to AI and digitalisation. Although there are relevant initiatives, such as the European AI strategy and the development of supercomputers for research, regulatory fragmentation and lower investment in technology have slowed its progress. However, the new global dynamic driven by Trump may be the catalyst for the region to adopt a more proactive stance on digitalisation and automation.

Although still in its infancy, Latin America is making progress in the adoption of artificial intelligence (AI) in sectors such as finance, health and education. Countries such as Brazil, Mexico and Chile have implemented regulations to promote the development of AI and attract investment in innovation. The key now is to accelerate the adoption of these technologies and close the digital divide to improve regional competitiveness.

A key factor that could accelerate these advances in the region is the global initiative of the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors for America Act) of the United States. This programme, launched in 2022, is intended to strengthen the capacity for semiconductor production in America. Although the CHIPS Act is centred on the United States, its impact on Latin America should not be underestimated.

The manufacture of semiconductors is crucial for the expansion of AI, as these components are fundamental for processing large volumes of data, enabling machine learning and other technological advances.

Geographical proximity (nearshoring) and trade agreements between Latin American countries and the United States could allow the region to benefit indirectly from the boost in semiconductor manufacturing, attracting investment and strengthening the technology and innovation ecosystem.

In this context, Costa Rica is positioning itself as a key player in Latin America. The country has been a regional leader in attracting technological investment and fostering innovation. The presence of technology multinationals such as Intel and other key companies in the semiconductor industry has turned Costa Rica into a technological hub in the region. In addition, Costa Rica has demonstrated a firm commitment to the development of public policies that promote digitalisation and technological transformation.

The key now is to accelerate the adoption of these technologies throughout the region to close the digital divide. Latin America must take advantage of the global momentum in the technology industry, such as the CHIPS Act, to improve its productive capacities, generate skilled employment and be a competitive player in the global digital economy. In this sense, Costa Rica is emerging as a model of good practice for other Latin American countries seeking to take advantage of the opportunities that artificial intelligence and semiconductors can offer.

Latin America: growth, immigration and the urgency of structural reforms

Trump’s immigration policy has been a central issue on his agenda, and his return to power reinforces the need for Latin America to address the root of the illegal immigration problem. Historically, millions of Latin Americans have emigrated to the United States in search of better economic opportunities, due to the lack of employment, insecurity and political instability in their countries of origin.

The tightening of immigration policies in the US should not be seen as a threat, but as an incentive for Latin American governments to push for structural reforms that will improve economic and social conditions in their countries.
Instead of depending on remittances, Latin America must generate decent employment, reduce bureaucracy and facilitate access to financing for entrepreneurs and small businesses.

Some of the key reforms that the region must prioritise include:

- Improvement in education and technological training.
- Attracting foreign investment.
- Development of infrastructure and digitisation.
- Strengthening the rule of law and security.

If Latin America takes advantage of this situation to accelerate its modernisation and strengthen its internal market, it will be able to become a more competitive and attractive player for investment, reducing its dependence on the US and mitigating the massive migration to the north.

Opportunities for the legal industry in the new global context

Digital acceleration, changes in the global economy and the new political cycle in the United States open up a wide range of opportunities for the legal industry in Europe and Latin America.

Growing regulatory complexity, the reconfiguration of international trade and technological advances are redefining the role of lawyers and law firms. Among the main opportunities are:

1. Digital law and artificial intelligence
The rise of digitalisation and artificial intelligence has generated a growing demand for experts in technology law and data protection. The regulation of AI, e-commerce and cybersecurity will be key areas of growth for lawyers in both regions.

2. Changes in international trade and corporate law
Trump’s trade policy could lead to a reconfiguration of trade agreements and greater restrictions on imports, which will have a direct impact on companies operating in international markets.

- Legal firms with experience in customs and commercial law will be key to advising companies on the restructuring of their supply chains.

- The renegotiation of trade agreements and the possible adoption of new tariff barriers will force many companies to review their export and import strategies, generating a greater demand for legal advice on investment strategies and bilateral agreements.

3. Latin American investment in Spain and immigration law
In the face of concerns about the United States, Spain is emerging as an excellent complement or alternative for investment. The increase in Latin American investment in Madrid has generated a boom in the real estate and financial sectors, which has led to a need for advice in commercial, tax and real estate law.

- The Startups Act in Spain and the favourable tax regime for foreign entrepreneurs have made Madrid an attractive destination for Latin American investors.

- The rise of the ‘golden visa’ and the growing migration of Latin American entrepreneurs and families have increased the demand for lawyers specialising in immigration law, relocation companies and international tax planning.

A call to action: Adaptation and reinvention in the face of a new era

Trump’s return to the White House should not be interpreted as a threat, but as an opportunity for Europe and Latin America to drive strategic reforms, modernise their economies and strengthen their global competitiveness.

1. Europe must seize this moment to break with its excessive regulation, foster innovation and strengthen its technological independence.

2. Latin America has the opportunity to accelerate its digital transformation, encourage investment and create conditions that reduce the need for mass migration.

3. Spain, as a bridge between the two regions, must continue to attract Latin American investment and consolidate itself as a global business hub.

In this context, the legal industry plays a crucial role, as new economic and technological dynamics require constant adaptation to emerging regulations and disruptive business models.

History has shown that moments of change can be the greatest drivers of progress. Europe and Latin America have in their hands the opportunity to transform their economic and legal models to become more competitive and prosperous in the new Trump era.