Recent US-imposed tariffs are significantly altering trade dynamics in Latin America, particularly affecting Colombia and Brazil. These tariffs have led to a sharp decline in exports to the US, prompting both nations to seek diversification in their trade partnerships, particularly with China and the European Union. In August, Colombia’s exports to the US plummeted by 13.7%, the steepest drop this year, coinciding with the implementation of a 10% tariff on Colombian imports. This downturn underscores the fragility of Colombia’s export recovery and its heavy reliance on the US market. Jose Manuel Restrepo, Colombia’s former finance minister, highlighted the vulnerability of small- and medium-sized enterprises (SMEs) in sectors like apparel, processed foods, plastics, and metals, which are most affected by these tariffs. Restrepo emphasized the need for Colombia to diversify its export markets and integrate more deeply with Latin American value chains and the Asia-Pacific region. Similarly, Brazil has experienced a consecutive decline in exports to the US, with a 20.3% drop in September. Jorge Arbache, former chief economist in Brazil’s Ministry of Planning, noted the potential for damaging factory relocations from Brazil to the US due to these tariffs. Both countries are now focusing on strengthening ties with other trading partners and enhancing their industrial diplomacy to mitigate the impact of US protectionist policies.