Just a few days into his presidency, President Donald Trump has already instigated his first international tariff dispute. Trump announced he would place an emergency 25% tariff on Colombia after the South American nation blocked US military deportation flights.
The new tariffs, however, risk driving up consumer prices on everyday American items, including coffee.
Colombia’s Gustavo Petro blocked US repatriation flights
US and Colombia relations quickly turned sour once Colombia denied two US military planes with deported migrants permission to land. Trump then quickly retaliated, posting on Truth Social:
“We will not allow the Colombian Government to violate its legal obligations with regard to the acceptance and return of the Criminals they forced into the United States!” – President Donald Trump
He even declared that he would impose a 25% emergency tariff on all Colombian imports, which he would raise to 50% in a week.
Moreover, he said he would revoke visas for Colombian government supporters, allies, and supporters and even introduce travel bans.
Trump also announced that he would impose visa sanctions on all party members and family members of the Colombian government.
In response to Trump’s post, Colombian President Gustavo Petro threatened to do the same and impose a 50% tariff on the United States.
Petro also commented on the visa sanctions and travel bans, telling Trump he really doesn’t like traveling to the US, terming it a bit boring. He even called out Trump’s character, saying Trump probably thinks of him and other Colombians as people from an inferior race.
Furthermore, he described himself as “stubborn,” indicating he was prepared to fight against Donald Trump’s impositions.
The US Embassy in Bogota has already halted any visa processing, and Secretary of State Rubio approved travel sanctions on individuals and their families involved in the block on US repatriation flight operations.
Americans risk seeing escalated coffee and flower prices with the new tariffs
The new tariffs could greatly hurt both economies, with each losing billions of dollars. According to the Office of the US Trade Representative, trade between the two nations results in over $53.5 billion annually as of 2022, with the US holding a trade surplus of $3.9 billion.
Additionally, Colombia accounts for over a third of the total nursery stock imports and roughly 20% of coffee imports.
In 2024, coffee prices shot up by nearly 4%, and with new tariffs coming in, Americans could be looking at much higher prices just ahead of Valentine’s Day.
The Observatory of Economic Complexity (OEC) even puts Colombian coffee and cut flowers at $1.8 billion and $1.6 billion, respectively, ranking second and third in Colombia’s exports to the US after crude oil at $5.4 billion.
Moreover, the US still gets bananas and avocados from Colombia, which could also become more expensive for the American people.
US industrialists working in petroleum products and chemicals, along with corn farmers, may also feel the pinch if Colombia goes ahead with its planned tariffs. The US earned roughly $2.5 billion from the sale of petroleum products in 2023. Not to mention, its annual import sale of corn and chemicals at the time accumulated to $1.2 billion and $1 billion, respectively.
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Source: https://www.cryptopolitan.com/trump-places-25-tariff-on-colombian-imports/