🚛 Trade Threats

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The word "tariff" has exploded into the world's collective consciousness in the past few weeks. Emboldened by the start of a 2nd US presidency and a base that is stronger than ever, Donald Trump has sought to re-balance what he describes as unfair trade relationships with much of the world.

His primary tool for this crusade is enacting tariffs (taxes) on US-imported goods worth $3.2T+ annually. He has shown us how he plans to use them — or the threat of them — as a powerful negotiating tactic.

His first threat of tariffs was directed at Colombia after President Gustavo Petro initially refused to accept deported migrants. Petro, amidst intense pressure, had to cede and accept planes full of migrants back into his country.

Trump then moved to Mexico and Canada, his closest trade allies, and signaled that even they were not safe, threatening to impose 25% on all their goods. Again, both countries offered some concessions around stricter enforcement at their borders in exchange for a 1-month tariff delay.

So, given the anxiety this trade drama has created, how much leverage does the US hold on Latin America?

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