Trump’s Policies Trigger New Risks for U.S. Firms in Latin America

This article was originally featured in Nearshore Americas By Narayan Ammachchi

Javier Palomarez Warns: Trump’s Latin America Policies Pose Rising Risk for U.S. Small Businesses

In a recent Nearshore Americas article, USHBC President & CEO Javier Palomarez raised strong concerns about the ripple effects of new U.S. policies toward Latin America.

Trump’s controversial designation of drug cartels as foreign terrorist organizations has introduced an unprecedented level of legal risk for U.S. companies operating in the region. The result? American small and mid-sized businesses, especially those in supply chain, manufacturing, and logistics, now face a complex web of compliance obligations and geopolitical uncertainty.

“Small and mid-sized businesses with cross-border ties are especially vulnerable,” said Palomarez, “as they lack the resources to absorb the shocks of sanctions, policy whiplash, or regional conflict.”

Palomarez went on to caution that viewing Latin America as a geopolitical pawn rather than a vital economic partner could undermine regional trust, trade, and long term U.S. interests.

“Latin America is no longer a passive sphere, it’s a set of dynamic economies, vital trade partners, and growing innovation hubs,” he emphasized.

His remarks advocate for a smarter, cooperative approach to regional relations, one rooted in engagement, investment, and trust, not just pressure and enforcement.

Read the full article on Nearshore Americas