ECLAC warns US tariffs will hit Latin America harder in 2026

José Manuel Salazar-Xirinachs, the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), warned that global trade uncertainty caused by United States tariffs is expected to hit Latin American economies harder in 2026.

Since returning to the White House in January 2025, President Donald Trump has implemented broad tariffs on both allies and adversaries, including a July announcement of generalized tariffs between 10% and 12.5% on 60 trading partners. While the net impact in 2025 was mitigated because these tariffs also affected competing nations, the regional impact is projected to intensify next year.

Salazar-Xirinachs noted that this economic instability is further compounded by the conflict between the United States and Iran, which has led to blockades in the Strait of Hormuz, a critical passage for global energy and commodity transport. Despite these challenges, the global economy has remained relatively resilient, supported in part by increased investment in artificial intelligence.