By Bruno Federowski BRASILIA, April 2 (Reuters) - The Mexican peso led Latin American currencies lower on Monday after China slapped tariffs on several U.S. products as retaliation against U.S. protectionism, fueling concerns of a trade war between the world's two biggest economies.

China raised tariffs by up to 25 percent on 128 products from frozen pork and wine to certain fruits and nuts. Soon after the announcement, an editorial in the widely read Global Times newspaper warned that if the United States had thought China would not retaliate or would only take symbolic counter-measures, it could "say goodbye to that delusion." The measure drove traders to sell risky assets and seek protection on the U.S. dollar. Currency markets in Mexico, itself embroiled in thorny trade negotiations with U.S. President Donald Trump's administration, were among the most affected.

The peso "will need some positive news from NAFTA negotiations in April and a change in the trend in presidential polls, to make inroads to below 18.00 (pesos to the dollar), otherwise, we may see ourselves looking at 19.00 again," strategists at Continuum Economics wrote in a client note.

The peso was down 0.8 percent to 18.3 to the dollar, leading losses among Latin American currencies.

Volumes were thin in the region as traders returned from the holiday-lengthened weekend.

Local factors drove some gains in stock markets, though risk-aversion curbed the advance. Brazil's benchmark Bovespa stock index inched up 0.1 percent as shares of miner Vale SA jumped on the heels of a new dividend policy.

Meatpacker BRF SA also rose as traders bet it could benefit from China's tariffs on U.S. pork exports.

Latin American stock indexes and currencies at 1455 GMT: Stock Latest daily % YTD % indexes change change MSCI Emerging Markets 1172,48 0,14 1,07 MSCI LatAm 3046,40 0,44 7,24 Brazil Bovespa 85458,25 0,11 11,85 Mexico IPC 46391,94 0,58 -6,00 Chile IPSA 5510,90 -0,57 -0,97 Chile IGPA 27606,19 -0,47 -1,34 Argentina MerVal 31114,93 -0,39 3,49 Colombia IGBC 11483,11 1,44 0,99 Currencies Latest daily % YTD % change change Brazil real 3,3084 -0,15 0,15 Mexico peso 18,2990 -0,76 7,65 Chile peso 602,95 0,27 1,94 Colombia peso 2790,9 -0,03 6,85 Peru sol 3,224 0,16 0,40 Argentina peso (interbank) 20,1450 0,12 -7,67 Argentina peso (parallel) 20,71 0,24 -7,15 (Reporting by Bruno Federowski; editing by Grant McCool)