Wednesday, May 27, 2026
Breaking

Ecuador Colombia Tariff War

Ecuador has raised tariffs on Colombian goods to 100%, sending bilateral trade down 44% as a diplomatic dispute rooted in security and geopolitics spirals into a full-blown economic rupture.

President Daniel Noboa announced the sweeping new duties in his State of the Union address on Sunday, framing the move as a response to Colombian support for Ecuadorian criminal groups and a wave of forced disappearances that rights groups trace to Colombian-linked cartels operating across the shared border.

The tariff escalation caps a three-month descent from initial 25% duties imposed in April. Business groups on both sides say the collapse is unlike anything seen since the Cenepa border conflict of 1995. Colombia’s commerce minister called the move “an act of economic aggression” and said Bogota was preparing a formal complaint to the Andean Community trade bloc.

The friction is partly downstream of a wider US regional strategy. Washington has backed Noboa’s military-first approach with $200 million in security assistance, while Colombia under Petro has pursued a more cautious posture toward Caracas. Ecuador’s navy seized three Go-fast boats suspected of carrying Colombian cocaine in the Gulf of Guayaquil last week — the third such intercept in eight days.

For Noboa, the tariff offensive also carries political utility. His approval rating has dipped 8 points since January, with voters in the border provinces hardest hit by cartel violence. A recent UN Development Programme survey found 62% of Ecuadorians list crime as their primary concern — ahead of jobs, healthcare and education. Tariffs on Colombia play to that anxiety, even as they deepen economic pain for importers and consumers already dealing with a 40% currency devaluation since 2023.

The Andean Community has called a special session for Thursday to consider mediation. Colombia has already imposed retaliatory tariffs on Ecuadorian bananas and flowers — key exports representing roughly $800 million annually. Neither side has signalled willingness to step back.