U.S. Tariff Threats and Realignment in Panama: Latin America at the Epicenter of U.S.–China Geopolitical Rivalry
Introduction
In early 2025, Latin America found itself at the center of an intensifying geopolitical contest between the United States and China. The Trump administration’s return to power marked a dramatic escalation in the use of tariffs, sanctions, and diplomatic pressure to assert U.S. interests and counter China’s growing influence in the region. Two flashpoints—Colombia’s refusal to accept U.S. military deportation flights and Panama’s withdrawal from China’s Belt and Road Initiative (BRI)—illustrate how Washington’s coercive diplomacy is reshaping alliances, challenging regional sovereignty, and forcing Latin American countries to navigate a perilous “great power” rivalry.
This report provides a comprehensive analysis of these developments, exploring the motivations, mechanisms, and consequences of U.S. actions, the reactions of Latin American governments, and the broader implications for regional stability, economic prospects, and the future of U.S.–China competition in the Western Hemisphere.
