The price of a container of Colombian coffee, Argentine beef, or Mexican avocados isn't just set by farmgate economics anymore. It's shaped by tariff schedules, trade agreement negotiations, and policy shifts happening in boardrooms and government offices across the hemisphere.

For importers and supply chain professionals sourcing from Latin America, 2024 and into 2025 presents a moment of real reckoning. Tariff environments are in flux. Some trade agreements are being renegotiated. Currency pressures compound the math. And the regional calculus—which countries offer the best duty treatment, which tariff classifications offer relief—is shifting faster than many importers realized.

This isn't a how-to guide. This is a dispatch from the front lines of a changing trade landscape.

The Tariff Pressure Points

Tariffs on Latin American imports are not uniform—far from it. The United States applies different duty rates depending on which country a product comes from, what the product is classified as, and which trade agreement (if any) applies.

Mexico continues to benefit from USMCA (the successor to NAFTA), which eliminates tariffs on most products—but the agreement's rules of origin are strict. A Mexican-made widget containing parts sourced outside North America may not qualify for duty-free treatment. Many importers are discovering that what they thought was tariff-free isn't, once their product is thoroughly audited.

Colombia, Peru, and Central American nations operate under different preference programs. The Andean Trade Preference Act and Central America Free Trade Agreement (CAFTA) offer tariff breaks on eligible goods, but these programs are narrower and less generous than USMCA. Textiles, agricultural products, and certain minerals have special rules—and the rules shift as trade agreements are renewed or renegotiated.

Brazil faces the steepest tariff exposure for many product categories. Without a comprehensive bilateral trade agreement, Brazilian exporters face Most Favored Nation (MFN) tariff rates, which are substantially higher. A piece of machinery, a textile, a chemical—all face base tariffs that can range from 5% to 25% or more, depending on the HS code.

What's critical right now: many of these preferential programs are either up for renewal or under review. Colombia's preferential access, for instance, has been politically contentious. Any shift in political winds or trade policy priorities could alter duty treatment overnight.

The Hidden Cost of Tariff Complexity

Here's where things get murky. A tariff rate isn't just a number on a form. It's the outcome of classification, origin determination, and documentation.

Tariff classification disputes are common. Is a particular type of leather handbag classified as a "handbag" (one duty rate) or "article of apparel" (possibly different)? Customs brokers and importers sometimes disagree with Customs officials. A reclassification can swing the duty cost by 10%, 15%, or more. And that cost isn't incurred once—it's incurred on every shipment until the classification is clarified.

Rules of origin documentation requires suppliers in Latin America to prove that their products meet the local-content thresholds required for preferential tariff treatment. If you're sourcing textiles from Guatemala under CAFTA, for example, the yarn must be made from Central American fiber, or the garment loses its tariff preference. Suppliers sometimes lack complete documentation, and importers then face a choice: accept the tariff hit or delay shipments while documentation is corrected.

Cumulation rules add another layer. Some trade agreements allow producers to count inputs from multiple partner countries toward the local-content requirement. Others don't. A manufacturer in El Salvador might source a component from Mexico, incorporate it into a product, and export to the U.S. Whether that transaction preserves tariff benefits depends on the specifics of the agreement and the HS code of the final product.

Many importers don't realize these complexities until they face a customs examination or a tariff refund demand months after importing.

Currency and Duty: A Compounding Problem

Tariff rates are expressed as a percentage of the declared value (ad valorem duties). When currencies in Latin America weaken against the dollar—as several have in recent years—the dollar value of goods stays the same, but the domestic currency cost to producers rises. To maintain margins, suppliers often raise prices. The importer then pays more, and the tariff, calculated as a percentage, is also higher in absolute terms.

Meanwhile, if tariffs increase, the total landed cost rises in two ways: the duty itself goes up, and the price sensitivity of consumers might compress demand, which can create supply chain inefficiencies and longer lead times.

Importers sourcing from Brazil, Argentina, or Colombia are particularly exposed to this dynamic right now, given currency volatility in those markets.

The Geopolitical and Policy Wildcard

Tariff policy is not determined by trade logic alone. It reflects political priorities, labor concerns, environmental standards, and diplomatic relationships.

Labor and sustainability scrutiny is increasing. Some policymakers are pushing for tariff adjustments tied to labor practices or environmental standards in Latin American countries. Products from regions or factories with labor concerns could face higher tariffs, additional audits, or outright import restrictions.

Bilateral trade negotiations are ongoing with several Latin American countries. A new agreement could lower tariffs on specific products—or tighten rules of origin, making compliance harder.

Industrial policy shifts in the U.S. can reshape tariff priorities. If nearshoring or reshoring of specific industries becomes a priority, tariffs might increase on competing imports from Latin America, even from preferential trading partners.

Importers who locked in sourcing decisions based on yesterday's tariff environment could find their cost models obsolete within months.

What Importers Are Doing Now

The smartest importers are taking several approaches:

  • Diversifying sourcing across multiple countries to hedge against tariff changes in any single market.
  • Investing in tariff classification expertise to ensure products are correctly classified and benefit from available preferences.
  • Negotiating longer-term price agreements with suppliers that account for potential tariff increases, protecting against surprise duty costs.
  • Working with customs brokers or tariff consultants to audit their import data and ensure they're not overpaying duties or missing reclassification opportunities.
  • Monitoring policy calendars and trade agreement renewal dates so they're not caught off-guard.

The complexity is real, and it's not going away. What's changing is the speed and frequency of policy shifts.

Why This Matters Now

Import costs from Latin America are being shaped by forces that individual importers can't control—but can't afford to ignore. Tariffs are only one variable, but they're increasingly volatile. The supplier you chose two years ago based on cost-competitiveness might not make the same economic sense today if tariff treatment has changed.

The region remains one of the most valuable and accessible sourcing hubs for North American importers. But the margin between opportunity and complexity is narrowing.

If you're actively sourcing from Latin America, now is the time to audit your tariff exposure, understand your suppliers' origin documentation, and build flexibility into your sourcing strategy.

Discover Open Americas — the marketplace where you can connect with verified suppliers across 12 Latin American countries, access real-time trade data, and build supply chains with transparency built in. Whether you're navigating tariff complexity or seeking new sourcing opportunities, having direct access to vetted suppliers and logistics partners changes the equation.

Common Questions About Latin America Tariffs

What's the difference between MFN and preferential tariff rates?

MFN (Most Favored Nation) rates are the standard duty rates the U.S. applies to countries without a preferential trade agreement. Preferential rates are lower duty rates offered to countries with trade agreements like USMCA or CAFTA. The difference can be 10% to 20% or more depending on the product.

How often do Latin American trade agreements get renegotiated?

USMCA is scheduled for a mid-term review in 2026. Andean and CAFTA agreements are reviewed periodically based on political and economic conditions. Policy changes can happen quickly, especially if labor or environmental issues arise.

Can a tariff classification change after I've already imported the product?

Yes. Customs can audit your past imports and reclassify products. If they determine you underpaid duties, you'll receive a bill—sometimes months after the import. This is why proper classification upfront is critical.

How do I know if my supplier's goods qualify for preferential tariff treatment?

Your supplier should provide a certificate of origin or origin documentation showing that the product meets the local-content and rules-of-origin requirements of the applicable trade agreement. Many importers request audits of this documentation before relying on it for tariff purposes.