By Claudio Álvarez del Castillo
President Trump, less than three months into his second term, has dramatically reshaped U.S. foreign policy. With over 100 executive orders signed, this administration has proven to be always on the offensive. When it comes to Latin America, Trump has made his objectives clear—reinforce control over illegal immigration, crack down on drug trafficking, and expand U.S. influence in the region. Through economic sanctions and trade pressures, he has left neighbouring countries with a difficult decision: comply with his demands or face severe repercussions.
This article examines the most relevant moves made by the Trump administration to bend Latin American nations to their will, exploring their impact on the region and the expectations for the future.
Trade and Economic Policy
“Tariffs are about making America rich again and making America great again,” Trump declared in his first address to Congress on March 4, celebrating his aggressive trade war against the country’s closest neighbours. As a bargaining strategy, he has imposed 25 per cent tariffs on all imports from Canada and Mexico. While the Mexican government has managed to delay these tariffs twice, with the latest extension set to expire on April 2, Canadians have taken a more combative approach, responding with retaliatory tariffs of its own. Both nations have also been impacted by universal tariffs on steel, aluminium and auto imports, industries that play a major role in their Free Trade Agreement, the USMCA.
With these economic sanctions, Trump aims to compel the country’s top two largest trade partners to take more stringent actions against illegal immigration and drug trafficking. Specifically, he wants to tackle the inflow of criminals and with that, the spread of fentanyl, a drug 50 times more potent than heroin that has invaded major American cities. Furthermore, the U.S. President insists these measures will incentivise North American manufacturers to relocate to the U.S., a strategy he claims will boost domestic employment and reduce reliance on foreign economies.
Beyond trade, Trump has displayed interest in the Panama Canal. His rhetoric about “taking it back” has been met with resistance from Panamanian President José Raúl Mulino who was visited by the Secretary of State, Marco Rubio in February. After the meeting, however, Mulino announced Panama would not renew its participation in the Chinese Belt and Road Initiative, signalling a clear manoeuvre to counter China’s influence and increase U.S. control of the region.
Meanwhile, on March 24, the U.S. President signed an executive order announcing tariffs on countries that import oil from Venezuela. This measure comes weeks after revoking licenses that allowed companies like Chevron to operate in this country, effectively halting Venezuelan oil exports to the U.S. and severely impacting the country’s primary source of revenue.
Migration and Border Control
Trump wasted no time declaring the situation on the southern border a national emergency. He swiftly deployed military forces and expanded the capabilities of the immigration and customs agencies. He has also lifted restrictions on immigration arrests, allowing them to take place in sensitive locations such as schools, churches and hospitals.
The impact has been staggering. Immigration and Customs Enforcement (ICE) recorded 32,809 arrests within Trump’s first 50 days in power—a staggering 627% increase compared to the previous administration. Nearly half of those detained are convicted criminals, while around a third face pending criminal charges. Although their countries of origin remain unclear, reports suggest most come from Latin America. This has led to severe overcrowding in detention facilities and has raised concerns about the need for additional resources to manage the increased detainee population.
Conversely, Customs and Border Protection (CBP) reported a sharp decline in apprehensions at the border, with February figures dropping 71% from January and 94% from the previous year—the lowest figures in 25 years. Trump attributes this clear reduction to his tough policies and aggressive rhetoric, which he claims have deterred migrants from attempting to cross.
To manage the overflow in detention centres, deportation flights have surged. Multiple countries such as Mexico, Venezuela, El Salvador and Panama have either voluntarily or forcibly accepted deportees. Colombia, for instance, initially refused to receive planes carrying deported migrants, but later conceded after Trump threatened to impose 25 per cent tariffs on all Colombian imports.
On March 15, the Trump administration deported 261 Venezuelan and Salvadoran immigrant detainees to El Salvador’s Terrorism Confinement Center (CECOT), Latin America’s largest prison. These deportations were justified under the rarely invoked Alien Enemies Act of 1798, which allows the U.S. government to expel non-citizens from “hostile nations” without an immigration hearing. Among the detainees were alleged members of Venezuela’s Tren de Aragua gang, which the United States designated a terrorist organisation in February. That same day, a federal judge issued a 14-day block on these deportations, but two flights were already en route by the time of the ruling. The initiative was first proposed by the President of El Salvador Nayib Bukele, who agreed to imprison 300 suspected Tren de Aragua members for a year in exchange for a $6 million-dollar fee.
Trump has also expressed great interest in expanding the Guantanamo Migrant Operations Center to hold ‘high-priority’ criminal immigrants, or as he stated, “some of them are so bad we don’t even trust the countries to hold them”. However, the plan has been stalled due to financial challenges as well as widespread legal and human rights concerns.
Security and Drug Trafficking
In February, the Trump administration officially designated eight major criminal groups from Mexico, Venezuela and El Salvador as terrorist organisations. This move grants the United States increased military and legal powers to combat these cartels, allowing for harsher prosecutions, asset seizures, and potential cross-border military interventions.
Moreover, under substantial economic pressures and amid accusations from Trump’s cabinet members that its government is riddled with cartel influence, Mexico has intensified anti-crime operations, increasing the number of apprehensions, and strengthening security along the northern border. A key moment came in February with the extradition of 29 high-profile cartel leaders to the U.S., several of whom are already facing trial. Despite these efforts, many question whether Mexico is genuinely committed to dismantling the cartels or merely doing the bare minimum to appease Washington.
What comes next?
In just a few months, Trump has profoundly reshaped U.S. relations with Latin America. Through economic pressure, aggressive immigration policies, and a hardline security stance, he has compelled neighbouring nations into compliance. While these measures have delivered immediate results, they have also triggered significant backlash, straining diplomatic ties and raising concerns about long-term stability. His return to the White House has sent shockwaves across the global political arena, forcing governments to adapt to his combative approach in an effort to avoid sanctions and diplomatic conflicts. Looking ahead, further economic sanctions on both allies and adversaries appear inevitable, and with that, an increase in tensions and uncertainty.
Photo: The Digital Artist via pixabay
