They are treated as latin americans, but not south americans.
And I wouldnt judge anything on what the US does

They assume hindu indians are arabs just for having beards etc. In general just like to lump people together (how they define ethnicities in their country is hilarious, broad stroke with the term hispanic for example, including Portuguese and Spanish people, dont consider them as caucasians because there is a seperate cathegory for it, hehe).
But to the issue at hand, you are indeed the new Kyle