China is flooding Latin American markets with low-priced exports, especially autos and e-commerce goods. The surge in imports is a significant challenge for local manufacturers and some countries are fighting back to protect their own industries.
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Here's what emergency doctors want you to doDoctors share the best ways to get the most from a bidetWorld creeps closer to eradicating human Guinea worm cases, with just 10 last year: Carter CenterOne Tech Tip: Escape the AI junk crowding your social media and music streamsWhy everyone is suddenly reliving 2016 onlineThe ranks of US rabbis grow more diverse, with rising numbers of women and LGBTQ peopleAcosados por la violencia de pandillas, ciudadanos palestinos en Israel exigen más seguridad Here's what emergency doctors want you to doDoctors share the best ways to get the most from a bidetWorld creeps closer to eradicating human Guinea worm cases, with just 10 last year: Carter CenterOne Tech Tip: Escape the AI junk crowding your social media and music streamsWhy everyone is suddenly reliving 2016 onlineThe ranks of US rabbis grow more diverse, with rising numbers of women and LGBTQ peopleAcosados por la violencia de pandillas, ciudadanos palestinos en Israel exigen más seguridadHybrid and electric vehicles shipped from China are unloaded from the BYD Changzhou car carrier docked at Terminal Zarate, in Argentina’s Buenos Aires province, Tuesday, Jan. 20, 2026. The BYD Changzhou car carrier is docked at Terminal Zarate in the Buenos Aires province of Argentina, Tuesday, Jan. 20, 2026, where hybrid and electric vehicles shipped from China are parked next to the ship. Clothing imported from China is on display for sale at a store in Quito, Ecuador, Saturday, Jan. 31, 2026. Vendors wait for customers at a market that primarily sells clothing imported from China in Asuncion, Paraguay, Saturday, Jan. 31, 2026. Hybrid and electric vehicles shipped from China are unloaded from the BYD Changzhou car carrier docked at Terminal Zarate, in Argentina’s Buenos Aires province, Tuesday, Jan. 20, 2026. Hybrid and electric vehicles shipped from China are unloaded from the BYD Changzhou car carrier docked at Terminal Zarate, in Argentina’s Buenos Aires province, Tuesday, Jan. 20, 2026. The BYD Changzhou car carrier is docked at Terminal Zarate in the Buenos Aires province of Argentina, Tuesday, Jan. 20, 2026, where hybrid and electric vehicles shipped from China are parked next to the ship. The BYD Changzhou car carrier is docked at Terminal Zarate in the Buenos Aires province of Argentina, Tuesday, Jan. 20, 2026, where hybrid and electric vehicles shipped from China are parked next to the ship. Clothing imported from China is on display for sale at a store in Quito, Ecuador, Saturday, Jan. 31, 2026. Clothing imported from China is on display for sale at a store in Quito, Ecuador, Saturday, Jan. 31, 2026. Vendors wait for customers at a market that primarily sells clothing imported from China in Asuncion, Paraguay, Saturday, Jan. 31, 2026. Vendors wait for customers at a market that primarily sells clothing imported from China in Asuncion, Paraguay, Saturday, Jan. 31, 2026. 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.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.at home. They need new markets for their products as the country ramps up production in many industries. Exports to Latin America, a market of more than 600 million people, and other regions have climbed while exports to the U.S. “Latin America has a solid middle class, relatively high purchasing power and real demand,” 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.”, 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.Cheap goods from China are welcome news for many Latin American consumers, but they’re a headache for local businesses. “I use Temu all the time, whether to buy clothes or household items. The same things I would find in brand-name stores or shopping malls, I find on Temu at a much lower price,” said Chilean restaurant manager Lady Mogollon.in the first half of 2025, a 165% increase year-on-year from 2024, market intelligence company Sensor Tower estimates. Shein’s monthly active users in the region grew 18%.T-shirts, jackets, pants, toys, watches and furniture and more products made in China fill the stalls of street vendors in downtown Mexico City.“The Chinese have invaded us in terms of merchandise,” said Ramírez, sitting behind the counter of his completely deserted store.The volume of e-commerce imports -- mostly from China -- soared 237% in October from the same month a year earlier, Argentine government statistics show. “We’re operating at historically low capacity as imports break record highs,” said Luciano Galfione, president of the nonprofit Pro Tejer Foundation, which represents textile manufactures. “We’re under indiscriminate attack.” “The number of Chinese products arriving in Argentina, this ultra-fast fashion, is deeply worrying,” said Claudio Drescher, head of the chamber of industry and owner of the Buenos Aires-born Jazmín Chebar clothing brand. “It’s an international phenomenon but it’s now really beginning to have dramatic importance here.” A Temu spokesperson said it has been giving Latin America local businesses “access to a low-cost, scalable online channel that was previously out of reach for many of them”, including the opening of its marketplace to domestic sellers in Mexico and Brazil in 2025. Shein said in a statement that the company “respects the importance of local industries and fair competition.” It would not comment on broader trade policy debates.Mexico and Brazil -- Latin America’s regional auto manufacturing centers -- also are under pressure from rising imports of low-priced Chinese cars. Chinese automakers such as BYD and GWM see huge growth opportunities in Latin America. More than 80% of the 61,615 EVs sold in 2024 in Brazil, the world’sMexico has become the largest destination for Chinese auto exports, importing 625,187 vehicles last year, according to the China Passenger Car Association, surpassing Russia’s imports.Mexico, as a base for major global manufacturers, is estimated to be the world’s seventh-largest auto producer, though about 3.4 million of the nearly 4 million vehicles it made last year were exported. Brazil turned out about 2.6 million vehicles, including many EVs and hybrids. That compared with China’s output of 34.5 million vehicles, including more than 7 million In an industry where scale is vital, “China does have a comparative advantage on EVs,” with affordable prices and massive government support, said Jorge Guajardo, a partner at the consultancy DGA Group and a former Mexican ambassador to China.in Brazil to expand capacity in the region, potentially creating hundreds if not thousands of jobs. Last year, however, Brazilian prosecutorsChina needs Latin America’s vast natural resources for its hungry industries, from lithium in Brazil to copper in Chile and fishmeal in Peru. But trade deficits with China are growing across the region.Mexico’s deficit with China, its second largest trading partner after the U.S., reached $120 billion in 2024, with exports of those including raw materials such as copper and its concentrates, electrical and electronic equipment and agricultural goods totaling only about $9 billion. Argentina’s trade deficit with China rose to nearly $8.2 billion in 2025, fueled by imports of more items such as electrical machinery and equipment and manufactured goods than its exports including of raw materials such as soybean and meat. Brazil recorded an about $29 billion trade surplus with China last year, according to Brazilian official data. That’s partly due to surging exports of soybeans after Beijing paused its purchases of U.S.-grown soy. Chile runs a surplus with China thanks to its exports of copper, lithium, fruits and wine. In most cases, China exports mostly manufactured goods and imports raw materials. But the relationship goes far beyond those basics. China provided loans and grants to countries in Latin America and the Caribbean in 2014-2023 worth roughly $153 billion -- the largest source of official sector financing for the region -- compared to approximately $50.7 billion that the U.S. provided, according to AidData, a research lab at William & Mary, a public university in Virginia.Latin America is a pillar of China’s “Global South” strategy of countering Western influence, said Andy Mok, a senior research fellow at the Center for China and Globalization.State-backed Chinese companies also have made massive investments in dams, mines and other infrastructure across the region. “There may be deep concern about competitiveness, but politically, many countries don’t feel they have the space to resist China’s export surge,” said Meyers from the Inter-American Dialogue think tank. “The relationship has become too important economically.”Brazil is among the countries eliminating or phasing out “de minimis” import tax exemptions for overseas parcels costing less than $50, in part to target cheap imports from China. It’s also increasing tariffs on EV imports. Other countries may follow suit, as some analysts expect more protectionist measures including tariffs and stiffer regulations coming out of Latin America.Given China’s growing leverage, though, countries face a “balancing act when it comes to protectionist policies,” said Leland Lazarus, founder of Lazarus Consulting, which focuses on China-Latin America relations.___ DeBre reported from Buenos Aires, Argentina. Batschke reported from Santiago, Chile. Sánchez reported from Mexico City. AP journalists Didi Tang in Washington, Gabriela Sá Pessoa and Tatiana Pollastri in Sao Paulo, Brazil and Megan Janetsky in Mexico City also contributed.Chan covers China business, economy and finance for The Associated Press, reporting on key sectors from technology to trade. He is based in Hong Kong.DeBre writes about Argentina, Bolivia, Chile, Paraguay and Uruguay for The Associated Press, based in Buenos Aires. Before moving to South America in 2024, she covered the Middle East reporting from Jerusalem, Cairo and Dubai.Batschke writes about Chile, Uruguay and Paraguay for The Associated Press, based in Santiago. Before moving to South America in 2024, she covered Southeast Asia reporting from Bangkok; Latin America from Sao Paulo, and European affairs reporting from Madrid.
International Trade South America Mexico Brazil Retail And Wholesale General News Asia Pacific Latin America Send To Apple News Tariffs And Global Trade Central America Luciano Galfione Business Gabriela S Pessoa Megan Janetsky Brazil Government Tatiana Pollastri Claudio Drescher World News Andy Mok Paul Gong Jorge Guajardo Didi Tang Argentina Government Chile Government Margaret Myers Leland Lazarus Lazarus Consulting World News
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