The implementation of President George H. W. Bush's 1989 Andean Initiative brought to the fore competing US and Bolivian agendas. While US embassy officials sought to exert control in pursuit of militarised policies, the Bolivian government's ambivalence towards the coca-cocaine economy underpinned opposition to the ‘Colombianisation’ of the country. This article deconstructs prevailing top-down, US-centric analyses of the drug war in Latin America to examine how US power was exercised and resisted in the Bolivian case. Advancing a more historically grounded understanding of the development of the US drug war in Latin America, it reveals the fluidity of US–Bolivian power relations, the contested nature of counter-drug policy at the country level, and the instrumentalisation of the ‘war on drugs’ in distinct US and Bolivian agendas.