Not confusing at all.

 

Do American citizens call themselves Americans? No, they call themselves White, Black, Cuban, Peruvian, etc. Truly, every western nation is American.

 

Do Brazilians call themselves South American even though they are? They call themselves Brazilian. Do Cubans call themselves Caribbean? No, people call themselves by their nationality and its always been that way for the Americas unless you are white or black, seeing that most whites come from multiple European countries and most blacks dont even know what African countries they came from.

 

If you go to a European country and ask a person what race they are, they'll answer like a latino and answer by their nationality.