The United States under its present government uses tariffs in Latin America as it uses them everywhere, to change trade. It also uses them there for purposes that have nothing to do with trade: to punish Brazil for putting a former president on trial, to make Colombia accept deportation flights, to stop Mexico's oil reaching Cuba. Governments that align with Washington, Argentina above all, have been given trade agreements and financial rescue. In a region where China is already the largest trading partner of most of South America, Brazil has answered the pressure by seeking more trade with Beijing.
The wider contest and each power's full account: Outside powers in Latin America.
Where it stands · September 2026
Argentina opened a sanction process against 45 entities over oil exploration near the Falklands and announced sanctions in its dispute with Britain. China said it would impose an additional 55 percent tariff on Brazilian beef imports from October 1. The United States signed oil deals with Venezuela as the Trump administration eased drug sanctions, and made demands to Brazil in tariff talks.
What the dispute is about
Trade or politics. Washington's stated reasons in Brazil's case have included unfair trade practices, digital regulation and the prosecution of Bolsonaro, whom Brazil's supreme court convicted of plotting to stay in power after losing the 2022 election. Brazil says its courts are not a subject for negotiation.
Reward and punishment. Argentina's president, an ideological ally, received a twenty-billion-dollar currency lifeline before an election and a trade deal after it. Governments on the left received tariffs. The region notices.
The alternative. Brazil answered the tariffs of July by opening talks on a trade agreement with China, already its largest customer.
