Not the United States: This Country Suddenly Imposes 50% Import Tariffs on Neighbour
The government of Ecuador has decided to significantly increase import tariffs on goods from Colombia, raising them from 30% to 50%, effective from 1 March. This policy marks a significant escalation in the trade and security dispute between the two countries.
The measure is being taken amid deteriorating relations between Ecuador’s right-wing President Daniel Noboa and Colombia’s left-wing President Gustavo Petro. Noboa has openly pressured Petro to tighten security along their shared border, following a surge in violence in Ecuador since the Covid-19 pandemic in 2020.
Since then, Ecuador has experienced a sharp increase in organised crime linked to the expansion of drug trafficking networks. Noboa, echoing the tone of United States President Donald Trump, has blamed Petro for being insufficiently aggressive in combating drug trafficking. Colombia has long been known as the world’s largest source of cocaine.
Like Trump in his trade policies, Noboa is increasingly relying on tariffs as an instrument to pressure Colombia to align with Ecuador’s national security strategy. His government has accused Petro’s administration of failing to cooperate on border security measures.
The two countries are both located on the Pacific coast and share a land border of approximately 586 kilometres. This latest escalation comes after Quito first imposed 30% tariffs in early February.
Beyond security concerns, Ecuadorian officials have justified the protectionist policy by citing a widening trade deficit. Data from the Observatory of Economic Complexity shows that nearly 4% of Colombian exports flow to Ecuador, valued at approximately US$2.13 billion. Ecuador imports large quantities of pharmaceuticals and pesticides from Colombia.
In contrast, only about 2.3% of Ecuador’s exports enter the Colombian market, valued at approximately US$863 million. According to Ecuador’s government data, excluding the oil sector, the country’s trade deficit with Colombia reached approximately US$1.03 billion by 2025.
Whilst the 50% tariff increase has been announced, it remains unclear whether the new policy will cover electricity imports from Colombia, which are a crucial resource for Ecuador.
In response to the initial 30% tariff, Colombia had previously suspended all electricity sales to Ecuador. This suspension has the potential to create domestic pressure on Noboa’s government.
In recent years, prolonged drought has disrupted operations of Ecuador’s hydroelectric dams, which supply nearly 70% of the country’s electricity needs. These disruptions have caused widespread power outages and triggered waves of anti-government protests. In similar situations previously, Noboa has chosen to purchase electricity from Colombia to cover supply shortages.
Beyond tariffs and electricity, the transport of fossil fuels has become another flashpoint in bilateral relations. Following the tariff policy implemented in February, the Noboa government increased the cost of shipping Colombian crude oil through the Trans-Ecuadorian System Oil Pipeline (SOTE) network by 900%.
This increase brought shipping costs to approximately US$30 per barrel. Colombia responded by halting all oil shipments through this pipeline.
High-level diplomatic efforts have not yet yielded results. A meeting of foreign policy and security officials from both countries held this month in Ecuador ended without breakthrough.
In announcing the latest tariff increase, Ecuador’s Ministry of Production and Foreign Trade criticised Colombia for failing to implement “concrete and effective” measures to stem drug trafficking in the border region.
Ecuador’s domestic security situation itself is under scrutiny. A country previously known for relative stability now faces a surge in murders and other violent crime. According to the Organized Crime Observatory based in Geneva, the murder rate in the Andean country reached an average of one murder case every hour last year.