Ecuador imposed a 30% tariff on Colombian imports due to border security concerns, prompting Colombia to retaliate with similar measures, including tariffs on 23 Ecuadorian tariff items and a temporary suspension of electricity exports. This escalation impacts bilateral trade worth billions of dollars and endangers jobs in sectors like agriculture and manufacturing. Business groups urge restoring diplomatic dialogue to prevent further economic fallout.
The trade tension between Colombia and Ecuador arose when Ecuadorian President Daniel Noboa announced a 30% tariff on Colombian imports, criticizing the Gustavo Petro government's lack of border control against illegal armed groups. In response, Colombia adopted a 30% ad valorem tariff on 23 Ecuadorian tariff items, broken into 73 sub-items, affecting products like rice, palm oil, sugars, plastics, and tires. From January 2023 to October 2025, Colombia imported 683,825.8 tons of these goods from Ecuador, highlighting the potential impact on local prices and supply chains.
The Ministry of Commerce, Industry, and Tourism, led by Minister Diana Marcela Morales Rojas, justified the measure as national security defense, claiming Ecuador violated Andean Community commitments. Additionally, Colombia suspended International Electricity Transactions (TIEs) starting at 6:00 p.m. on January 22, 2026, a technical decision to ensure domestic supply, according to Petro, who pledged to restore service once national energy sufficiency is confirmed. Ecuador stated it has 5,454 megawatts of installed capacity to meet its demand autonomously.
Petro also ordered the Public Force absolute control on the Ecuador border to prevent fentanyl precursor entries, emphasizing bilateral coordination against drug trafficking, which has heightened violence in Ecuador. Bilateral trade is significant: through November 2025, Colombia exported $1.673 billion to Ecuador, its sixth main destination and second in non-mining-energy goods, while Ecuador exported $681 million to Colombia. In Valle del Cauca, over 440 companies export more than $330 million annually, risking thousands of jobs in sugar, auto parts, and fashion.
The National Business Council and Fedearroz called for restoring relations through dialogue, warning that using economic tools for political pressure undermines regional integration. Fedearroz requested including rice in the tariffs and designating a single port to control illegal imports, saving 100,000 hectares at risk. Both nations keep diplomatic channels open to resolve the transitory conflict.
