China’s Low-Cost EVs and E-Commerce Goods Flood Latin America, Triggering Trade Backlash

Low-cost Chinese electric vehicles and bargain e-commerce goods are rapidly gaining ground across Latin America, raising alarms among governments and domestic industries, according to a new report by The Associated Press.

China’s expanding trade footprint is especially visible in major markets such as Brazil, Mexico and Chile, where sluggish demand at home has pushed Chinese manufacturers to seek growth abroad. Backed by heavy state subsidies and low production costs, Chinese brands now dominate key segments, particularly electric vehicles.

In Brazil, more than 80% of the 61,000 EVs sold in 2024 were Chinese, led by BYD and GWM. In Mexico, Chinese-made vehicles accounted for about 15% of total car sales last year, a sharp contrast to the United States, which has largely blocked such imports through steep tariffs. BYD, now the world’s largest EV producer ahead of Tesla, recently shipped over 5,800 EVs and hybrids to Argentina under a temporary tariff-free import scheme.

Beyond autos, low-priced goods from Chinese platforms such as Temu and Shein are flooding regional markets, undercutting local retailers.

Governments are beginning to push back. Mexico has imposed tariffs of up to 50% on selected Chinese imports, while Brazil and Chile are tightening tax exemptions and raising duties on EVs and low-value parcels. Still, analysts warn that Latin America has limited leverage. China remains the region’s largest source of official financing, providing roughly three times more loans and grants than the United States over the past decade, according to AidData.

«There may be deep concern about competitiveness, but politically many countries don’t feel they have the space to resist China’s export surge,» said Margaret Myers of the Inter-American Dialogue, highlighting how economically vital the relationship with Beijing has become.

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