In the latest escalation of the Colombia-Ecuador trade dispute—following initial 30% tariffs in February—Ecuador's 100% tariff on Colombian products took effect May 1, after Colombia imposed 35%, 50%, and 75% tariffs on 190 Ecuadorian products. Border business groups report trade collapse and smuggling risks amid narcotrafficking accusations.
Ecuadorian President Daniel Noboa announced the 100% tariff, effective Friday May 1, without specifying products. It responds to complaints since February about Colombia's narcotrafficking controls along the 586-km border and a trade deficit—Ecuador claims a $62.9 million surplus from February to March 2026, versus a $146 million deficit prior.
President Gustavo Petro rejected the claims and imposed graduated tariffs Thursday (35-75% on ~190 products) until Ecuador relents. Trade Minister Diana Marcela Morales called it 'structured, adequate, and differentiated to minimize impact.'
Trade has plummeted: Carchi Heavy Transport Association head Carlos Bastidas decried it as 'a whim' by both presidents; Rumichaca Bridge crossings dropped from 150 trucks to five Friday. Ipiales Chamber of Commerce's Iván Flórez said it 'practically closes exports.'
Colombia suspended energy exports to drought-hit Ecuador and deployed 15,000 troops to the border. Both sides anticipate job losses and smuggling surges.
