Tariffs and Sanctions are the Long-Term Solution for Latin America

A New Regime

Last month, the Trump administration proposed tariffs for Mexico and cancelled Chevron’s license in Venezuela, two punitive measures aimed at forcing Latin America to address its migrant crisis. While U.S. economists have rightly critiqued the negative impact these measures will have on American consumers, these policies will directly address the root cause of the region’s problems: failed socialist policies in Latin America.

The economic effects of these restrictions for everyday Americans cannot be ignored, but they are a political necessity. In Latin America, socialist agendas have been the primary drivers of economic collapse, criminal exportation, and mass migration from these regions. Recent history has shown that when the U.S. removes economic consequences from these oppressive nations, migration increases, suggesting that U.S. economic policy has the power to influence authoritarian regimes and directly impact the quality of life for native residents. The Trump administration should not back down until authoritarian leaders south of the border have embraced significant reforms.

As a Cuban I am familiar with American sanctions and tariffs, and have seen the way they impact both government and people. The Obama administration attempted to normalise relations with Cuba in 2014, and after trade restrictions were lifted, the dictatorship pocketed all the extra money from concessions and used it to strengthen the military. Repression increased, political arrests went up by almost 50% and arbitrary detentions saw their highest numbers in years. Restrictions were necessary then as they are now if we want to push for change without direct intervention.

Trump’s sanctions on Mexico are already having an impact on crime at the border. The tariffs have already proved to be a peaceful way to push for the reduction of cartel violence and enforcement of immigration laws. In the face of the looming economic threat, the Mexican government agreed to deploy 10,000 National Guard Troops to monitor the northern border. As a result there has been an increase of vehicle inspections, seizing of firearms and drugs and almost 600 arrests have been made. These increased security efforts had a direct impact on public safety, and homicide rates in Juarez have already dropped by a third in 2025. Canada and Colombia have also agreed to better cooperation on the immigration issue in response to the tariff threat. Governments with policies that create instability and migration crises should not enjoy the benefit of free trade with the U.S. Trump’s political decisions today will be the advantages of the future.

The Maduro Regime

Meanwhile, the cancellation of Chevron’s license in Venezuela will be a significant deterrent to President Maduro’s socialist agenda. The move will be a huge financial loss for the country and stands to cripple its already struggling economy. Venezuela’s oil money has destabilised democracies and financed criminal allies for years. On top of inciting record inflation and criminal gang exportation, Maduro’s regime is responsible for the largest migration crisis in modern history, with over 7.7 million Venezuelans displaced since 2018. Free trade with the U.S. has directly facilitated the border crisis, increasing drug trafficking and crime rates in the U.S. These proposed sanctions are the first vital step in slowing this trend. 

The costs to American consumers is real. Trump’s proposed tariffs are already having an impact on U.S. prices and the availability of certain goods. In the month of February there was a prices paid index increase of 7.5 percentage points for manufacturers, and new order placement backlogs due to the tariff uncertainty. Still, almost 80% of consumers say they would be more likely to purchase American-made products, and there is potential for creating and protecting new jobs in the U.S. While no tariffs should be automatic or permanent, the administration is demonstrating that geopolitical conditions should be a major factor for consideration, even if they lead to short-term price increases.

Sanction for Change

The short-term consequences of these policies are real, but the long-term benefits to the penalised nations have already been proven around the world. In South Africa, international sanctions in the 1980s contributed to eventually ending apartheid and establishing democratic elections. Economic restrictions can force governments to negotiate reforms and concessions for the people, ultimately facilitating free elections and political change. 

The socialist left has leveraged human suffering to get U.S. economic concessions for years, never once showing legitimate intention of reform. In spite of this track record, the conservative right has been hesitant to take necessary actions for fear of short-term consequences. If the socialist alliance in Latin America is allowed to continue destabilising the continent, it will become an increasing threat to U.S. national security, and we’ll have bigger problems than a short term price increase or a temporary economic slowdown.

True economic freedom is not only about free trade or lower tariffs, but about a country’s ability to choose its terms of engagement and respond appropriately to unfair treatment. Sparking a debate on tariffs has already delivered results, regardless of the outcome. A proactive, unapologetic approach in the face of challenging neighbours that also seeks to target the root cause for the biggest issues of today can provide us with a real opportunity to make not just the U.S., but all America, great.

Gabriela Blanco

Cuban Dissident | Journalist and Pundit