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"Latino" is a very incorrect term when you think about it, because from its etymology, it should mean anyone who speaks a Romance language, but it does not. French Canadians are NEVER considered Latin Americans, even though they live in the Americas and speak a language derived from Latin.
Latino SHOULD mean not only people who speak Spanish, but also French-speaking people, Italians, Romanians, even some Swiss and Belgians, but of course it does not.
Latino is equivalent to Spanish-speaking (Hispanic). I think it could also include speakers of Portuguese because Portugal is part of Hispania and Brazil is culturally related to the Spanish-speaking countries of America and the type of Portuguese spoken in Brazil has a lot of Spanish in it.
So imo, Latino/Hispanic means anyone from Spain, Portugal, Brazil, or especially, from the Spanish-speaking parts of the Americas.
Just like the United States, people of all races, not just people of Spanish descent, live in Latin America and speak Spanish. Just as many non-white people speak English in America, many non-Spanish people in Latin America speak Spanish. Some are descended from African slaves, some are mostly Native American, some are European in descent, and most are mixed. If they look Asian, they are probably mostly Native American, because Native Americans originally came from Asia after the end of the last Ice Age and for that reason some Native Americans physically resemble East Asians.
Latino is not a racial term, it is a linguistic and cultural term. Not to mention a pretty incorrect one, Hispanic is a somewhat better term.