China is flooding Latin American markets with low-priced exports, especially autos and e-commerce goods, as it adjusts to U.S. tariffs. Exports to Latin America have increased while exports to the U.S. fell by 20% last year. Latin America’s middle class and purchasing power make it an ideal market for China to offload excess production.

Chinese e-commerce platforms like Temu and Shein have gained market share in Latin America, with a 165% increase in monthly active users for Temu in 2025. Local businesses in Latin America are facing competition from Chinese goods, leading to job losses in certain industries due to rising imports.

Mexico and Brazil are facing pressure from rising imports of low-priced Chinese cars. Chinese automakers like BYD and GWM see growth opportunities in Latin America, with over 80% of electric vehicles sold in Brazil in 2024 being Chinese brands. Mexico has become the largest destination for Chinese auto exports, surpassing Russia.

Latin America’s trade deficits with China are growing, with countries like Mexico and Argentina importing more than they export. China’s investments in infrastructure across the region and its financing of projects are part of its strategy to counter Western influence. Some countries are pushing back against Chinese imports through tariffs and tax increases.

Countries in Latin America face a balancing act when implementing protectionist measures against Chinese imports due to China’s growing leverage. While some countries have imposed tariffs and taxes, they must be cautious not to provoke retaliation from China. The relationship between Latin America and China continues to be economically significant despite concerns about competitiveness.

Read more at Yahoo Finance: Flooded by cheap Chinese goods, Latin America is fighting back to protect its industries