Facing Trump's tariff threats, Global South nations poised to strengthen cooperation

Editor's note: Lin Hua is an associate researcher at the Institute of Latin American Studies of the Chinese Academy of Social Sciences. The article reflects the author's opinions and not necessarily the views of CGTN.

Recently, the Trump administration has once again wielded its tariff stick, introducing sweeping "reciprocal tariffs" starting at 10 percent. Major Latin American economies, including Brazil, Argentina, Chile, Colombia, and Peru, face 10 percent tariffs, while Venezuela, Nicaragua, and Guyana are hit with 15 percent to 38 percent tariffs. Although Mexico is exempt from this latest round of tariffs under the USMCA agreement, it remains affected by previous tariffs on steel, aluminum, and automobile products. Confronted with this new wave of trade pressures, the question arises: Will nations of the Global South, including those in Latin America, simply react passively, or will they seize this moment to break free from their long-standing dependency on the Western-dominated economic systems?  

The impact cannot be ignored

While Latin America isn't at the epicenter of this trade storm, the consequences are significant. The region's economies, which depend overwhelmingly on exporting low-value-added primary commodities such as agricultural produce and minerals, come under significant strain from tariffs as low as 10 percent, revealing their structural vulnerability. Moreover, given the close US-Latin America trade relationship, these tariffs will drive up import prices across the region, exacerbating consumer burdens and potentially worsening inflation in some countries.

Latin America's post-pandemic recovery remains fragile, with regional GDP growth projected at just 2.3 percent for 2024. As the US remains the primary trade partner and largest investor for most Latin American nations, these "reciprocal tariffs" will undoubtedly hinder the region's economic recovery. In late April 2025, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) revised its 2025 growth forecast downward by 0.4 percentage points to just 2 percent. The ECLAC warned that the region faces an exceptionally complex and uncertain global economic landscape, where US tariffs will not only directly reduce exports but also trigger financial market volatility, compounding the challenges.  

Latin America's strategic choices  

Though responses from Latin American governments have varied, the region is taking a two-pronged approach: engaging in dialogue to urge the US to reconsider its stance, while simultaneously exploring new partnerships and markets. This reflects a growing determination to pursue autonomous development and regional stability.  

Regionally, strengthening solidarity among Latin American nations has become imperative. The Ninth Summit of the Community of Latin American and Caribbean States, held on April 9 in Honduras, emphasized the need for member states to align their positions on critical issues and project a unified "Latin American voice." The summit also called for accelerated regional integration to collectively address geopolitical challenges.

Globally, diversifying trade partnerships is now a strategic priority. Latin American countries are actively expanding their export markets to reduce reliance on the US and build a more resilient long-term trade framework. Ironically, because many Latin American exports compete directly with US goods, Washington's tariffs on other major economies could open new opportunities for the region — particularly in agriculture and raw materials. For instance, China has recently increased its soybean imports from Brazil.  

The awakening of the Global South  

The Trump administration's aggressive reciprocal tariff policy is causing unprecedented disruptions to the global economic order. This blatant act of hegemony, protectionism, and unilateralism has served as a wake-up call for the Global South. For decades, countries in the Global South have passively accepted rules dictated by the West. Now, they confront a harsh reality: Continued dependence on Western-dominated systems will only perpetuate their role as pawns in economic gamesmanship.

In a striking irony, America's attempt to enforce compliance through tariffs has backfired spectacularly. Instead of bending to US demands, Global South nations are increasingly turning"East" and "South" for alternative pathways. The era of passively accepting US-dictated rules is irrevocably over. No longer content to be mere bystanders in shaping their economic futures, countries like China and those in Latin America, Southeast Asia and Africa, are actively rewriting the playbook. Through deepened South-South cooperation and strengthened regional alliances — whether through BRICS expansion, ASEAN integration, or Africa's Continental Free Trade Area — they are collectively dismantling the foundations of unipolar dominance. History may yet prove that the evolution of the international economic order has never been — and will never be — dictated by the whims of a single nation.