Amid new US tariffs, nations across the Global South are coming together to strengthen cooperation and assert their economic independence.
Recently, the US administration introduced sweeping tariffs starting at 10 percent, affecting major Latin American economies like Brazil, Argentina, Chile, Colombia, and Peru. While Mexico is exempt under the USMCA agreement, it still feels the impact from previous tariffs on steel, aluminum, and automobile products.
These tariffs pose significant challenges for Latin American countries that rely heavily on exporting primary commodities such as agricultural products and minerals. The increased tariffs reveal a structural vulnerability in their economies, potentially driving up import prices, burdening consumers, and worsening inflation.
With regional GDP growth projected at just 2.3 percent for 2024, these trade pressures threaten to hinder Latin America’s fragile post-pandemic recovery. The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has warned of an exceptionally complex and uncertain global economic landscape.
Strategic Responses
Latin American nations are taking strategic steps to navigate this new reality. They are engaging in dialogue with the US to reconsider its stance while actively exploring new partnerships and markets. Strengthening solidarity within the region has become imperative.
At the Ninth Summit of the Community of Latin American and Caribbean States held in April 2025, member countries emphasized the need to align their positions on critical issues and project a unified “Latin American voice.” Accelerated regional integration is seen as a key strategy to collectively address geopolitical challenges.
Globally, diversifying trade partnerships is now a top priority. By reducing reliance on the US, Latin American countries aim to build a more resilient and sustainable trade framework. For instance, increased trade with countries in Asia presents new opportunities for growth.
The Awakening of the Global South
The new tariffs have served as a wake-up call for the Global South. For too long, these nations have operated under economic systems dominated by the West. Now, there’s a growing determination to pursue autonomous development and reshape the international economic order.
Countries across Latin America, Southeast Asia, and Africa are actively seeking deeper cooperation and stronger regional alliances. Whether through BRICS expansion, ASEAN integration, or Africa’s Continental Free Trade Area, they are collectively working to create a more balanced and multipolar world.
History shows that the evolution of the global economic landscape is shaped by the collective actions of nations. The Global South’s proactive approach signifies a new chapter where they are no longer passive participants but active contributors to their own economic futures.
