Higher U.S. tariffs are triggering heightened market uncertainty across Latin America and the Caribbean, with the full effects expected to hit in 2026, a new United Nations report warned on Wednesday. The International Trade Outlook for Latin America and the Caribbean 2025, released by the UN Economic Commission for Latin America and the Caribbean (ECLAC), indicated that although the region currently faces an average effective tariff rate of about 10 percent following U.S. tariff hikes in February 2025, which is still below the global average of 17 percent, the full impact of these policy changes will likely become evident in 2026. The report further cautioned that shifts in U.S. trade policy are affecting foreign direct investment (FDI) flowing into the region, particularly in export industries oriented toward the U.S. market. In the first half of 2025, FDI project announcements in the region fell to 31.37 billion dollars, a 53 percent decrease from the same period in 2024, and 37 percent below the 2015-2024 average. The ECLAC called on countries in the region to strengthen cooperation with a broader range of trade partners including China.The report also recommended avoiding measures that could increase uncertainty amid a global trade landscape already marred by major disruptions and geopolitical tensions. Shotlist: Santiago, Chile - Nov 19, 2025: 1. "International Trade Outlook for Latin America and the Caribbean, 2025: International Trade in a New Era of Weaponized Interdependence (Spanish version)" released by UN Economic Commission for Latin America and the Caribbean (ECLAC); 2. Various of ECLAC press conference in progress; 3. SOUNDBITE (Spanish) José Manuel Salazar-Xirinachs, Executive Secretary, UN Economic Commission for Latin America and the Caribbean (ECLAC) (partially overlaid with shots 4-5): "2026 will be the first year with a full 12 months under the new tariffs, and that's when we will fully feel the effects. The impact will not be limited to Latin America. U.S. domestic markets will also face greater shocks, especially in retail, where consumers may experience inflation. U.S. multinationals relying on supplies from Latin America will also bear cost pressures." [SHOTS OVERLAYING SOUNDBITE]; Washington D.C., USA - Recent 4. Man loading goods on shelves; 5. Various of customers shopping, goods for sale [SHOTS OVERLAYING SOUNDBITE]; FILE: Brazil - Date Unknown 6. Brazilian national flag, traffic; FILE: Sao Paulo, Brazil - Date Unknown 7. Various of buildings, traffic; FILE: Sao Paulo, Brazil - 2025 8. Various of port facilities, containers, cargo ship; FILE: Mexico - 2025 9. National flags of Mexico, United States; 10. Aerial shot of containers, traffic; 11. Various of traffic; FILE: El Paso, Texas, USA - 2018 12. Various of traffic at U.S.-Mexico border; sign reading "Welcome to Mexico"; FILE: Buenos Aires, Argentina - Dec 9, 2023 13. Aerial shot of Casa Rosada Presidential Palace, national flag of Argentina; FILE: Buenos Aires, Argentina - Jan 10, 2023 14. Obelisk of Buenos Aires, traffic; FILE: Buenos Aires, Argentina - March 12, 2024 15. Various of locals at grocery; FILE: Buenos Aires, Argentina - April 2023 16. Pedestrians; 17. Traffic. [Restrictions: No access Chinese mainland]