The United States continues to exert substantial influence on current developments in Latin America. Beyond the intense crisis with Venezuela, it remains at odds with several countries, particularly on trade issues.
Even in this context, tensions with Brazil eased after Washington suspended additional tariffs of up to 40% on 238 products. At the same time, Ecuador succeeded in removing the 15% surcharge applied to key exports such as bananas, although restrictions on other goods remain. Meanwhile, Rio de Janeiro saw a large-scale police operation that left numerous casualties, and Ecuador’s government suffered a political setback after four proposals it had promoted were rejected in a referendum.
Elsewhere, the dispute with Colombia is worsening following leaks suggesting a tougher U.S. stance, including possible sanctions—prompting President Gustavo Petro’s government to recall its ambassador for consultations. In addition, despite recent progress with Mexico, Donald Trump’s statements about potential military interventions in the country and the imposition of a 25% tariff on truck imports have reignited tensions.
The Bank of Mexico cut interest rates to stimulate economic activity, mirroring a similar decision in Uruguay, which has also been accepted to join the CPTPP —a trade pact representing roughly 15% of global GDP.
In Chile, Jeanette Jara and José Antonio Kast will compete in the runoff presidential election, with Kast leading the polls. The next administration will face a Congress where the right has made significant gains. Argentina’s legislative elections showed a similar pattern, with Javier Milei’s party increasing its share of power. Inflation continues to decline in the country, though at a slower pace than in previous months.
Peru, meanwhile, recorded deflation, and new president José Jerí began his term with a 56% approval rating, in stark contrast to the 3% held by his predecessor, Dina Boluarte. Paraguay improved its ties with Brazil after resuming dialogue on the Itaipú hydroelectric treaty and agreeing on cooperation in solar energy.
The European Union is likewise strengthening its relationship with Latin America. At the EU–CELAC Summit, both sides advanced on a joint roadmap covering trade, energy, and digitalization. Despite tensions linked to U.S. influence—which led to the absence of key European leaders—the summit succeeded in promoting agreements across multiple strategic areas
