Latin America is closest to China and USA lost terrain in the comercial war
Donald Trump's administration, is being overcome by the new alliances of China with Latin American countries.
In recent years, Latin America has become an important ally of China. 39.1% of Chile’s total exports go to China, as do 31.7% of Brazil’s and 29.2% of Peru’s.
On the other hand, the USA is facing problems with its own protectionist strategies dealing with India and tariff payments.
This situation puts China at the top of the trade war and gains ground in the new way of conducting international business, where tariffs and production are as important as geopolitical intelligence.
Latin America: the new China partner
Countries in South America are known for their production of raw materials. Cotton, potatoes, and other raw materials are exported in large quantities throughout the year. And their new main destination is China.
Brazil has consolidated an important and strong commercial relationship with China. Without signing a free trade agreement, this country is the main source of soy for the Asian titan. According to Pedro Polli Rebelo, executive director of São Paulo Negócios on Bloomberg Línea: "In 2009, China surpassed the USA as the main commercial partner."
Next on the list is Chile, the first Latin American country to sign a free trade agreement with China. Since 2006, its commercial links in key sectors such as mining, wine, fruit, and seafood production have been getting stronger every year. The Asian country needs these supplies to support its urban and industrial growth.
Finally, Peru represents one of the closest bonds with China in South America. Since 2009, and its inclusion in the New Silk Road in 2019, its exports to the Asian titan have grown from 12.8%, according to the Ministry of Foreign Trade. As a result of this relationship, last year they opened the Chancay Pier, a $3.5 million investment to make Peru a regional logistics hub.
Trump dealt with inflation
Meanwhile, the USA is looking for new alliances in other parts of the world. President Donald Trump announced that India is open to withdrawing duties on its imports.
Scott Bessent, Treasury Secretary, said that a commercial agreement was close to being sealed since JD Vance's visit to New Delhi. However, Donald Trump still criticizes Apple for expanding its production to India.
These declarations are made in the context of the 26% tariffs that Washington imposes on Indian products and the newest Apple factory approved by the Indian government.
Walmart is affected
Meanwhile, the CFO of Walmart, John David Rainey, in an interview with The Wall Street Journal, said that their prices are going to rise due to the duties imposed by Trump’s administration, especially on Chinese products.
Although this weekend the duties were temporarily reduced, Rainey said that the 30% tariff still has an important impact on families, especially those with lower incomes.
