"China has been flooding Latin American markets with low-priced exports, especially autos and e-commerce goods, as its exporters adjust to U.S. President Donald Trump's tariffs and geopolitical moves. The world's second-largest economy has become a major trading partner for many Latin American nations, seeking access to their abundant natural resources and growing markets while expanding its influence in a region Trump views as America's Backyard."
"said Margaret Myers, director of the Asia and Latin America program at the Inter-American Dialogue think tank in Washington. "Those conditions make it one of the easiest places for China to offload its excess industrial production." The influx of made-in-China cars, clothing, electronics and home furnishings has rankled countries trying to build their own globally competitive industries. Some, such as Mexico, Chile and Brazil, have raised tariffs or taken other measures to protect their local industries."
China has increased exports of low-priced cars, clothing, electronics and home furnishings into Latin America as exporters shift away from U.S. markets. Chinese firms face weak domestic demand and rising production, making Latin America’s market of more than 600 million people attractive due to a solid middle class and relatively high purchasing power. Exports to the U.S. fell by about 20% last year while shipments to Latin America and other regions climbed. E-commerce platforms led by Temu and Shein have accelerated penetration; Temu averaged 114 million monthly active users in Latin America in H1 2025, up 165% year-on-year. The surge has pressured local manufacturers and prompted tariff increases and other protective measures in countries such as Mexico, Chile and Brazil.
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