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Trump’s Biggest Tariffs Yet Hit Latin America

April 3, 2025
in News
Trump’s Biggest Tariffs Yet Hit Latin America
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Many Latin American officials watched U.S. President Donald Trump’s tariff announcement on Wednesday with bewilderment. Trump plans to hit all countries with baseline 10 percent duties, but around 60 trade partners will face even higher rates. The Trump administration calculated the so-called reciprocal tariff rate based on the U.S. trade deficit with each country.

Countries that have tried to get close to Trump generally received no special treatment. Right-wing Argentine President Javier Milei has tilted his foreign policy toward the United States, even proposing a bilateral trade deal to Trump advisors. But Argentina was hit with the same tariff rate as Brazil, which has a left-leaning government and which Trump has criticized for protectionism.

Many Latin American officials watched U.S. President Donald Trump’s tariff announcement on Wednesday with bewilderment. Trump plans to hit all countries with baseline 10 percent duties, but around 60 trade partners will face even higher rates. The Trump administration calculated the so-called reciprocal tariff rate based on the U.S. trade deficit with each country.

Countries that have tried to get close to Trump generally received no special treatment. Right-wing Argentine President Javier Milei has tilted his foreign policy toward the United States, even proposing a bilateral trade deal to Trump advisors. But Argentina was hit with the same tariff rate as Brazil, which has a left-leaning government and which Trump has criticized for protectionism.

The United States has a trade surplus with both Argentina and Brazil, so they each received the minimum 10 percent rate. Other large Latin American economies such as Chile, Colombia, and Peru also face 10 percent tariffs, lower than the new duties of upward of 20 percent and 30 percent that Washington slapped on major trading partners in Europe and Asia.

Read more in today’s Latin America Brief: What Trump’s Latest Tariffs Mean for Latin America

This post is part of FP’s ongoing coverage of the Trump administration. Follow along here.

The post Trump’s Biggest Tariffs Yet Hit Latin America appeared first on Foreign Policy.

Tags: Central AmericaEconomicsNorth AmericaSouth AmericaTrade Policy & AgreementsU.S. Foreign Policy
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