Latin America Advisor 2024-06-12 – Inter-American Dialogue

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

June 12, 2024

What Do Tariffs on Chinese Goods Mean for Latin America?

The United States is imposing higher tariffs on several Chinese imports. A ship and cars made by Chinese vehicle manufacturer BYD are pictured. // File Photo: BYD.

Q

U.S. President Joe Biden last month announced an increase in tariffs on several Chinese imports, including not only electric vehicles, but also advanced batteries, solar cells, steel, aluminum and medical equipment. Biden said the tariffs are an effort to counter Chinese government subsidies, which he said give China’s products an unfair advantage in global trade. How will the tariffs affect trade between the United States, Central America and Mexico, particularly amid the “nearshoring” trend? How do the tariffs affect relations between the United States and Mexico? Which sectors stand to be most affected by the tariffs?

A

Francisco Sanchez, partner, and Caroline Howard, associate, at Holland & Knight: “President Biden’s plan to increase tariffs on several Chinese imports is a strategic move to counter Chinese government subsidies that give China an unfair trade advantage. The implementation of these tariffs has the potential to affect U.S.-Mexico trade relations both positively and negatively. The countries are part of an interconnected supply chain, especially within the framework of the USMCA. Mexico, a significant manufacturing hub, will likely experience an increase in U.S. demand for certain products. At the same time, disruptions in industries reliant on Chinese imports for components or raw materials may experience significant challenges. Consequently, Mexican manufacturers might need to seek alternative suppliers or face increased production costs, potentially leading to…”

Top News

Russian Warships Conduct Drills En Route to Havana

Two Russian military ships conducted missile drills Tuesday in the Atlantic Ocean while headed to Cuba for exercises, Russia’s defense ministry said.

U.S. Court Gets Offers for Shares in Citgo’s Parent Firm

An auction for shares in Venezuelan-owned, U.S.-based oil refiner Citgo’s parent company closed Tuesday.

Haiti Forms New Gov’t, Conille to Also Serve as Interior Minister

Haiti named a new government under interim Prime Minister Garry Conille. In the new cabinet, Conille will also serve as interior minister, putting him in charge of intelligence gathering and much of the country’s security forces // File Photo: United Nations.

Complete editions of the Latin America Advisor are delivered on a biweekly basis to members of the Dialogue’s Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.

ABOUT THE LATIN AMERICA ADVISOR

The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

Subscribers

Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

Launch of the Regional Repository of Chinese Investments in Latin America

asia & Latin America

education

energy transition & Climate

Migration, Remittances & Development

peter d. bell rule of law

cities

Women & Girls