The tariffs recently announced by President Donald Trump about products from Colombia could upload the price of some items that Americans buy every day.
Trump said in a publication on social networks on Sunday that he would immediately impose a 25% general tariff to all goods that enter the United States from Colombia, among other sanctions. The announcement occurred after Colombia rejected an American military flight of deported immigrants. Trump also said that tariffs would shoot at 50% in a week.
A tariff is effectively a property tax when they are introduced into a country. Although the importing company pays the tax, the cost often moves to other parts in the form of higher prices, including US consumers.
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What elements will be affected?
Colombia is not one of the largest commercial partners in the United States, but high tariffs could still affect billions of dollars of economic activity. The United States Commercial Representative Office figure the total bilateral trade between the United States and Colombia in 53.5 billion dollars annually from 2022, and the United States will have a commercial surplus of 3.9 billion dollars.
According to data collected by the Observatory of Economic Complexity (OEC), oil is the largest export of Colombia to the United States, with approximately 6 billion dollars in 2022.
Oil is a bidirectional trade among countries, since the refining oil in the United States is the largest export to Colombia.
Colombia’s second largest export was coffee, with 1.8 billion dollars, according to the OEC. Colombia represents about 20% of coffee sent to the United States and is the second largest source of imports after Brazil, according to the United States Department of Agriculture.
Coffee tariffs could press Americans who already have to pay for their drinks. The price of coffee increased 3.8% in 2024, above the general inflation rate, according to the Office of Labor Statistics.
The cut flowers were the third largest import of Colombia, with 1.6 billion dollars. Other articles that are regularly sent to the United States from Colombia include gold and aluminum structures.
International tensions
Tariffs to Colombia are a domino effect of the repression of the Trump administration against undocumented immigrants in the United States. Mexico and Brazil are among other countries that have raised objections to the United States plan to send immigrants back to their old homes.
During his campaign, Trump promoted tariffs as a way to increase government income and force other countries to accept US policies.
“We will not allow the Colombian government to violate its legal obligations regarding the acceptance and return of the criminals that forced to enter the United States,” Trump said in a social truth publication.
Meanwhile, his Chinese rival has been increasing its commercial relations with Colombia and is now the second commercial partner of the country. The outbreak of a commercial dispute with Colombia for Trump’s immigration policies could provide an opportunity for China, which is thirst for oil and coffee in Colombia.
