The Financial Times has reported on its website that a surge in protectionist steel tariffs is taking place in Latin America, driven by diverted Chinese exports.
According to the Financial Times, Chinese producers have been inundating Latin American markets with steel at "predatory prices," which has compelled local mills to reduce operations and lay off workers. Global steel output reached 343.7 million metric tons in early 2024—more than half of the world's total—which exceeded Chinese domestic demand and led to surplus material being redirected to regions like Latin America. This sequence of events illustrates how tariffs imposed by the United States and the European Union on Chinese steel have redirected its exports to other regions, causing disruptions beyond Western markets.
SeafoodSource reports that in April 2025, Mexico, Chile, and Brazil implemented new restrictions on steel imports: Mexico approved tariffs on goods from non-Free Trade Agreement (FTA) countries, while Chile and Brazil applied measures focused solely on steel. This protectionism occurs amid broader trade agreements: in October 2023, China and Chile signed a seafood trade agreement aimed at expanding exports of Chilean aquaculture products, including fresh coho salmon, to China. This agreement highlights deepening Sino-Latin economic ties even as the region establishes barriers against Chinese steel, illustrating the complex interaction between market diversification and reactive trade defense strategies.
China's expanding trade and infrastructure ties in Latin America are increasingly perceived as a U.S. national security challenge due to Beijing's strategic leverage over the Western Hemisphere. According to the China-US Focus think tank, Chinese-backed projects—including a major port in Peru and deep-water terminals near the Panama Canal—could enable Beijing to monitor or restrict U.S. naval and commercial vessel access during crises. U.S. defense officials and Congressional testimony have warned that this growing Chinese presence in critical regional infrastructure may facilitate intelligence gathering and influence operations that threaten American economic and military interests.
The Financial Times is a UK-based international daily newspaper specializing in global business, economic, and political reporting. Founded in 1888, it is recognized for its distinctive salmon-colored pages and comprehensive financial journalism.