EMERGING MARKETS-Latam FX, stocks dip as markets weigh Trump's tariffs; Brazil's real recovers

By Ragini Mathur and Purvi Agarwal

July 10 (Reuters) - Most Latin American currencies and stocks slipped on Thursday, but the Brazilian real bounced back as markets assessed the impact of U.S. President Donald Trump's latest tariff salvo.

Late on Wednesday, Trump targeted Latin America's biggest economy with threats of 50% tariffs on exports to the U.S. while simultaneously issuing tariff notices to seven smaller trading partners.

Brazilian President Luiz Inácio Lula da Silva vowed retaliation against unilateral tariff hikes, and called a meeting with ministers on the day.

The Brazilian real volatility gauges BRLSWO=FN surged to their highest levels since late April on Wednesday, and the real BRL= had fallen as much as 2.3%.

It rebounded on the day, up 0.6%, the most among peers.

"The market has to wait and see, because we have had such speculative behavior before... it is like making strategies in order to start negotiating and focus on the higher interests that the United States has," said Julian Pineda, market analyst at StoneX.

"They are targeting some key political interests rather than economic interests so this may cause a temporary weakening (in the real)."

The Brazilian real has been among the best performing Latam currencies this year as high interest rates in the economy make it a valuable carry trade currency.

Data also showed that Brazil's annual inflation rate ticked up and remained well above the official goal, casting doubts over the end of the monetary policy tightening cycle in the country.

The Colombian peso COP= was down 0.4%, tracking prices of oil.

Mexico's peso MXN= fell 0.3%, the most among peers ahead of the central bank's release of its June meeting minutes.

Chile's peso CLP= was down 0.2%. A central bank poll of analysts showed that it is expected to cut its benchmark rate by 25 basis points at its July 28 meeting.

Chile came under the spotlight after Trump slapped 50% tariffs on copper imports to the U.S. earlier this week, and set a hard deadline of August 1.

Peru's sol PEN= fell 0.1% in low volumes ahead of a local monetary policy decision.

MSCI's Latin American currency index .MILA00000CUS declined 1%, set for its steepest one-day fall in more than a month, pressured by a high U.S. dollar =USD.

The region's stocks gauge .MILA00000PUS was down 1.7%, set to extend declines to a fourth straight session. Heavyweight Brazilian stocks .BVSP down 0.8%, and Mexican stocks .MXX slipping 0.4%.

Argentina's Merval index .MERV slumped 2.8% as investors returned from a market holiday.

Key Latin American stock indexes and currencies around 1440 GMT: