Latin America & Caribbean: Programs, Observatories & Deep Dives

The Trump administration fundamentally altered US security policy in the Caribbean, shifting from decades of diplomatic engagement to a strategy emphasizing military buildup, economic sanctions, and aggressive counter-narcotics operations—changes that reshaped regional dynamics and deepened tensions with allies like Venezuela and Cuba.

Announced in January 2017, the new approach centered on three pillars: expanding military exercises, tightening economic controls, and framing the Caribbean as a critical battleground in the “war on drugs.” By 2020, the US had deployed additional naval assets to the region, imposed stricter financial regulations on Caribbean banks, and escalated rhetoric against Venezuelan President Nicolás Maduro, labeling his government an “immediate threat” to US interests. These moves marked a departure from the Obama-era emphasis on diplomacy and development aid, instead prioritizing coercive measures that analysts say reflected broader Trump administration priorities: isolating adversaries and projecting strength through military means.

Key to this shift was the 2018 National Security Strategy, which explicitly identified the Caribbean as a region where “illicit finance and transnational criminal organizations” posed direct risks to US security. The strategy was paired with operational changes, including the reactivation of the US Southern Command’s Caribbean-focused task forces and a surge in joint military drills with regional partners like Colombia and Jamaica. By fiscal year 2020, the Pentagon had allocated $1.2 billion to Caribbean security initiatives, a 30% increase from 2016.


US Southern Command’s 2019 operational map highlighting increased military presence in the Caribbean. Source: US Southern Command

Why the Caribbean Became a Trump Administration Priority

Three factors drove the shift: the opioid crisis, Venezuelan instability, and China’s growing influence in the region. US officials, including then-National Security Advisor John Bolton, framed the Caribbean as a “chokepoint” for drug trafficking routes into the US, citing data that showed 90% of cocaine smuggled into the US transiting through Caribbean waters. Meanwhile, Venezuela’s economic collapse under Maduro created a power vacuum that the Trump administration feared would be exploited by Iran, Russia, and Hezbollah—claims later echoed in a 2019 presidential proclamation declaring Venezuela an “unusual and extraordinary threat.”

Why the Caribbean Became a Trump Administration Priority

China’s Belt and Road Initiative (BRI) further complicated US strategy. By 2018, Chinese loans to Caribbean nations had surpassed $10 billion, prompting US officials to warn of “debt diplomacy.” In response, the Trump administration launched the Caribbean Basin Security Initiative (CBSI), a program designed to counter Chinese economic influence by offering alternative financing for infrastructure projects.

Military Buildup: Exercises, Bases, and the “Caribbean Shield”

The most visible change was the expansion of US military operations. In 2017, the Trump administration revived the Trident Junction exercises, which simulate counter-narcotics and disaster response scenarios. By 2019, these drills included 12 Caribbean nations and involved US Navy destroyers, Marine Corps units, and Special Operations forces. The exercises were framed as defensive but were widely seen as a signal to regional powers—particularly Venezuela and Cuba—to curb support for anti-US movements.

Military Buildup: Exercises, Bases, and the "Caribbean Shield"

Additionally, the US sought to strengthen its basing rights. In 2018, the Pentagon negotiated expanded access to Jamaican and Bahamian ports, allowing for prepositioned supplies and rapid deployment of troops. Critics, including Caribbean diplomats, argued these moves undermined regional sovereignty, while supporters cited the need to counter “hybrid threats” from non-state actors.

Economic Leverage: Sanctions, Banking Regulations, and the “Maduro Threat”

The Trump administration’s economic strategy relied on two tools: sanctions and financial pressure. In August 2017, the Treasury Department imposed sanctions on Venezuela’s state oil company, PDVSA, cutting off a key revenue stream for Maduro’s government. By 2020, these measures had reduced Venezuela’s oil exports by 60%, exacerbating the country’s economic crisis.

Simultaneously, the Financial Crimes Enforcement Network (FinCEN) tightened regulations on Caribbean banks, requiring them to report suspicious transactions linked to Venezuela. The 2020 FinCEN advisory warned of increased money-laundering risks in the region, pressuring banks in the Dominican Republic, Panama, and the Bahamas to adopt stricter due diligence measures. While officials framed these steps as combating corruption, regional leaders argued they disproportionately targeted legitimate businesses.

Diplomatic Fallout: Strained Relations and Regional Pushback

The policy changes strained US relations with traditional allies. In 2019, the Trump administration’s recognition of Juan Guaidó as Venezuela’s interim president—without consulting Caribbean nations—sparked backlash. The Caribbean Community (CARICOM) rejected the move, calling it a violation of regional sovereignty. Even close partners like Colombia faced friction when US pressure led to the 2019 closure of its border with Venezuela, disrupting trade and migration flows.

Trump administration weighs potential action in Venezuela as U.S. military expands in Caribbean

Cuba, too, faced renewed US hostility. The Trump administration reversed Obama-era easing of travel and trade restrictions, reinstating a near-total embargo in April 2019. The move was cheered by Cuban-American lobby groups but condemned by the UN, which called it a violation of human rights. Economically, the restrictions cost Cuba an estimated $4.3 billion annually in lost tourism and remittances.

What Happens Next: Biden’s Reversal and Lingering Challenges

When Joe Biden took office in January 2021, he signaled a return to diplomacy, reversing some Trump-era measures. The US lifted restrictions on Cuba and eased sanctions on Venezuela, though Maduro’s government remains isolated. However, the military buildup persists: the Biden administration has maintained Trident Junction exercises and expanded partnerships with Caribbean nations under the CBSI.

What Happens Next: Biden’s Reversal and Lingering Challenges

Long-term challenges remain. The Caribbean’s debt crisis, exacerbated by the pandemic, has left many nations vulnerable to both Chinese loans and US pressure. Meanwhile, drug trafficking routes—once a secondary concern—now dominate US-Caribbean security dialogues. As of 2024, the DEA’s 2023 threat assessment ranks the Caribbean as a “critical transit zone” for fentanyl and cocaine, ensuring the region’s strategic importance endures.

Key Takeaways

  • Military focus: Trump’s policy prioritized exercises like Trident Junction and expanded basing rights, marking a shift from diplomacy to coercion.
  • Economic pressure: Sanctions on Venezuela and stricter banking rules targeted illicit finance but strained regional economies.
  • Diplomatic backlash: CARICOM and Cuba rejected US moves as overreach, while allies like Colombia faced unintended consequences.
  • Lasting impact: Biden’s reversals on Cuba/Venezuela didn’t undo military or financial policies, leaving the Caribbean caught between US and Chinese influence.

The next checkpoint for US-Caribbean relations is the 2024 Summit of the Americas, where leaders will debate drug policy, migration, and China’s role. With the Caribbean’s economic recovery hinging on external support, the region’s ability to navigate these pressures will define its future—whether as a US-aligned partner or an independent player in a multipolar world.

For updates on US Caribbean policy, track State Department advisories and US Southern Command announcements. Share your thoughts: How should the US balance security and sovereignty in the Caribbean?

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