Indonesian Political, Business & Finance News

Trump Becomes Trendsetter as This Country Drops 100% Tariff Sanctions Bomb

| Source: CNBC Translated from Indonesian | Trade
Trump Becomes Trendsetter as This Country Drops 100% Tariff Sanctions Bomb
Image: CNBC

The Ecuadorian government has officially announced the imposition of a 100% import tariff on all products from Colombia, set to take effect in May 2026. This drastic decision was announced on Thursday local time as a direct response to a diplomatic dispute involving the leaders of the two South American countries.

This step was taken after Quito recalled its ambassador from Bogota as a form of protest against statements by Colombian President Gustavo Petro. Petro provoked the anger of the Ecuadorian government by referring to the imprisoned former Vice President of Ecuador as a political prisoner.

The individual in question is Jorge Glas, who served as vice president under the socialist leader Rafael Correa and his successor, Lenin Moreno. Glas himself was sentenced to 13 years in prison last year in a corruption case, marking his fourth conviction since 2017.

Petro’s statement ignited the fury of the government of right-wing President Daniel Noboa, a close ally of US President Donald Trump. Noboa views Petro’s remarks as interference in Ecuador’s judicial system.

Petro reacted strongly to the 100% tariff threat, calling the policy a monstrosity. He even threatened to withdraw Colombia from the Andean Community of Nations, a trade bloc that also includes Bolivia, Ecuador, and Peru.

“This is truly a monstrosity, but it signals the end of that group, in which we are no longer actually participating,” the left-wing leader stated firmly via his official account on social media platform X, as quoted by AFP on Friday (10/4/2026).

Previously, Noboa had initiated the trade dispute with Colombia since January, deeming Bogota uncooperative in combating drug trafficking and illegal mining along the border. From an initial tariff of 30%, Noboa then raised the tariff on Colombian products to 50%.

Colombia retaliated against this move by imposing a 50% tariff and halting electricity sales to Ecuador. This has exacerbated Ecuador’s ongoing chronic energy crisis.

As of this report, various negotiation efforts between the two countries continue to reach a deadlock with no agreements reached. The imposition of the 100% tariff is predicted to completely sever trade relations between the two neighbouring countries.

Tariff sanctions are often used by Trump to punish countries with trade surpluses against the US. This also serves as Trump’s weapon to pressure many countries into cooperation.

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