Cheap Chinese exports swamp Latin America, putting local industry under strain in World Economy News 04/02/2026 China is flooding Latin America with low-priced exports as US tariffs bite, squeezing local industries and forcing governments to weigh protectionism against Beijing’s growing influence. China has been flooding Latin American markets with low-priced exports, especially cars and e-commerce goods, as its exporters adjust to US President Donald Trump’s tariffs and geopolitical moves. The world’s second-largest economy 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. Chinese businesses are facing sluggish demand at home and 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 US fell by 20% last year. “Latin America has a solid middle class, relatively high purchasing power and real demand,” said Margaret Myers, director of the Asia and Latin America programme 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.” The influx of made-in-China cars, 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 local producers. Cheap e-commerce goods gain market share Cheap goods from China are welcome news for many Latin American consumers, but they are proving a headache for local businesses. Chinese e-commerce platforms, led by Temu and Shein, have accelerated that trend. “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. Temu averaged 114 million monthly active users in Latin America 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%. The trend is not limited to just online shopping. T-shirts, jackets, trousers, toys, watches, furniture and other products made in China fill the stalls of street vendors in downtown Mexico City. Ángel Ramírez, manager of a lamp shop in the area, is struggling to compete. “The Chinese have invaded us in terms of merchandise,” Ramírez said, sitting behind the counter of his deserted store. China is flooding Latin America with low-priced exports as US tariffs bite, squeezing local industries and forcing governments to weigh protectionism against Beijing’s growing influence. China has been flooding Latin American markets with low-priced exports, especially cars and e-commerce goods, as its exporters adjust to US President Donald Trump’s tariffs and geopolitical moves. The world’s second-largest economy 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. Chinese businesses are facing sluggish demand at home and need new markets for their products as the country ramps up pro