Tariff uncertainty, high logistics costs, and tax pressures are among the factors currently impacting international trade in Latin America; however, efforts are also underway to integrate the region into global value chains , according to industry specialists.
Paolo Giordano, principal economist of the Productivity, Trade and Innovation Sector of the Inter-American Development Bank (IDB) , recalled that despite the United States’ tariff policy during 2025, Latin American trade proved to be resilient, registering an annual growth of 6.4%, one of the highest.
“Last year, with the tariff increases, there was great concern about a slowdown or a standstill in trade, but it didn’t happen because there was an anticipation effect of the tariffs, and they also manifested themselves at a lower level than expected, so trade has been growing. It is beginning to rise structurally, although there is a lot of uncertainty,” he emphasized.
During the webinar Strategic Overview of International Trade in Latin America , organized by UPS , he reiterated that greater uncertainty is expected, “since we do not know when the next blow will come; there will be greater selectivity and trade diversion effects.”
He noted that while the commercial performance in Latin America was encouraging in 2025, now “it is a highly unstable outlook . “
César Vence, executive director of the Association of American Chambers of Commerce in Latin America and the Caribbean (AACCLA) , explained that the challenges for trade are uncertainty due to tariff measures, high logistics costs, and persistent tax pressures that affect the region’s industries.
However, he highlighted that one of the opportunities to minimize the impacts is nearshoring (relocation of production lines), digitalization, artificial intelligence (AI) and automation.
“There are many opportunities, and we are competitive in the region. We are prepared to compete globally in a different economy. Latin America is positioned between two oceans, making us a natural bridge between Europe, North America, and Asia-Pacific, with strategic proximity to the United States and shorter delivery times. In the context of nearshoring , this gives us an advantage and a decisive factor in competitiveness,” he explained.
The area, in addition to having a market of more than 650 million consumers, also has a network of strategic ports, inland terminals, dry ports and new projects.
“Latin America is investing in its logistics capacity because it sees opportunities to integrate more efficiently into global value chains. It has a more dynamic and increasingly skilled workforce in sectors such as automotive, aerospace, digital, and technology, and a wealth of natural resources,” Vence pointed out.
He reiterated that regional integration will be the way to face the current situation, and that nearshoring will continue to be important, so he called for working on public-private collaborations and understanding the dynamics of foreign trade.
María Luisa Boyce, UPS Vice President of Global Public Affairs, agreed that, despite the uncertainty, trade continues ; only the movement of goods has changed in terms of information and processes.
He also explained that tariffs have been modified, with the reciprocal tariff currently at 10% in most countries. “This presents an opportunity for exporting . “
He emphasized that companies must understand logistical efficiencies, routes, and regulations. “We need to identify opportunities to export to other regions and within the region. Trade hasn’t ended; rather, it’s essential to know, from beginning to end, how the product is being handled and what information is being provided to the authorities.”
In that regard, he considered that the review of the United States-Mexico-Canada Agreement (USMCA) represents a competitive advantage for having a more secure logistics chain.
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