China emerged as the fastest-growing market for goods from Latin America and the Caribbean during the first three months of 2026, according to a report released Tuesday by the Inter-American Development Bank (IDB). Despite that rapid growth, the United States continued to hold its position as the region’s dominant trading partner.
The IDB report found that Latin American exports to China jumped 25% in the first quarter of 2026 compared to the same period in 2025. Exports to the rest of Asia climbed 24%, those heading to the European Union increased 19%, and shipments to the U.S. rose 14%.
“The United States contributed most to the total increase in Latin American and Caribbean exports, whilst China and the rest of Asia showed the greatest dynamism,” the IDB stated in its report.
U.S. dominance in the region is largely tied to its trade relationships with Mexico and Central America, while China tends to lead as a trading partner across much of South America.
On the import side, goods flowing from China into Latin America surged 29%, compared to a more modest 4% increase in U.S. exports to the region. Even so, the U.S. share of Latin American imports climbed to a record level approaching 22%, while China’s share dipped slightly to 9.6%.
Overall, Latin American exports grew nearly 16% in the first quarter of 2026 compared to the same stretch of 2025 — double the 8% annual growth rate seen throughout all of 2025. Rising prices and higher volumes of key regional commodities fueled that growth.
Gold prices soared 64% between January and April, as investors turned to the precious metal as a safe-haven asset during times of financial uncertainty. Copper, oil, soybean, and iron ore prices also increased, though more modestly. Meanwhile, coffee and sugar prices dropped by more than 20%.
The conflict involving the U.S., Israel, and Iran pushed fuel prices higher, dealing a significant blow to countries that rely heavily on energy imports. Even nations that export oil and benefited from higher revenues felt the pinch through increased fertilizer and freight costs.
In Venezuela, total exports declined 8.7% during the first quarter of 2026, even as shipments to the U.S. ticked up slightly. That modest uptick followed the U.S. capture of President Nicolas Maduro at the beginning of the year and the imposition of significant oversight over the OPEC nation’s oil sector.
The IDB cautioned that “instability in global trade policies and the proliferation of geopolitical conflicts are creating a high degree of uncertainty,” while noting this environment presents “both risks and opportunities for the region.”
