EMERGING MARKETS-Latam FX mixed, stocks lower as Trump's tariffs continue to roil markets

By Ragini Mathur and Purvi Agarwal

July 15 (Reuters) - Latin American currencies were mixed while stocks dipped on Tuesday as investors digested U.S. inflation data that met expectations and monitored ongoing U.S. trade negotiations.

U.S. consumer prices picked up in June, likely marking the start of a long-anticipated tariff-induced increase in inflation in the world's largest economy.

The dollar index =USD edged higher after the data, last up 0.4%, pressuring most Latam currencies.

"The report reinforces the view that while inflation remains sticky, it may not be accelerating fast enough to rule out interest rate cuts later this year," said Quasar Elizundia, research strategist at Pepperstone.

The Colombian peso COP= fell 0.2%. Trump's 50-day ultimatum to Russia, to end its war in Ukraine or brace for sanctions, eased oil prices and added to the peso's declines.

Mexico's peso MXN= was little changed in choppy trading, even after the U.S. announced about 17% tariffs on fresh tomatoes from Mexico, which account for two-thirds of the tomatoes eaten in the U.S., and the end of an export deal between the two countries.

President Donald Trump has intensified his trade war over the last week by imposing sweeping duties on many emerging markets in Asia, Brazil and Mexico, effective August 1.

However, markets found reassurance as Trump remained open to negotiations, fueling hopes that final tariff levels might be reduced through diplomatic channels.

"The expectation of an eventual compromise ... is the basic driver of the resilience and relative calm that we have seen in markets in the face of this escalating tariff rhetoric," said Andres Abadia, chief Latam economist at Pantheon Macroeconomics.

Brazilian president Luiz Inacio Lula da Silva, on the other hand, will sign a decree on reciprocal tariffs on Monday, setting the criteria for his response to foreign trade measures hurting the economy.

Even though Brazil's closed economy shields it from a significant impact from Trump's tariffs, the political nature of the duties will keep markets invested in these developments as Brazil goes to vote next year.

Brazil's real BRL= gained 0.5%, outperforming peers on the day, while Chile's peso CLP= edged 0.4% higher, after having hit its lowest level since mid-April on Monday.

The Latam currency index .MILA00000CUS was 0.1% higher while the regional equities gauge .MLA00000PUS was down 0.3% on the day.

Stocks were lower, with those in Brazil .BVSP and Mexico .MXX slipping 0.4% and 0.1% respectively. Stocks in Colombia .COLCAP were down 0.3%.

India is holding talks with Chile and Peru to source critical minerals under ongoing free trade pact negotiations, a trade ministry source said.

Key Latin American stock indexes and currencies: