Colombia said Thursday it will apply a 30% tax on a group of products from Ecuador and suspend the sale of energy to that country as the neighbors’ trade dispute escalates.
The announcement came a day after Ecuador President Daniel Noboa’s government announced matching tariffs, following protests tied to a trade deficit with Colombia that Noboa said is more than $850 million. Noboa also cited a lack of reciprocity in securing their shared border, which remains a stronghold for criminal organizations and international drug trafficking.
Colombia’s government said it was surprised by Ecuador’s unilateral tariffs and said bilateral cooperation remains active through binational mechanisms, including joint military and anti-narcotics operations.
In the trade data cited by the dispute, Ecuadorian exports to Colombia from January to November 2024 totaled $760 million against $1.8 billion in imports, according to Ecuador’s ministry of production. Building on that trend, Ecuador’s exporters reported that the trade deficit with Colombia reached $852 million during the same period in 2025.
Colombia said the 30% tariff announced Thursday covers 20 unspecified Ecuadorian products, and authorities noted there is “the possibility of extending the measure to a broader group.” Colombia’s ministry of commerce said the specific exports represent approximately $250 million, and Commerce Minister Diana Marcela Morales said the tariffs are temporary while the government remains open to a diplomatic, negotiated solution.
Business leaders in both countries have warned of near-term economic fallout if the dispute is not resolved. Oliva Diazgranados, the executive director of the Bogotá-based Colombian-Ecuadorian Chamber of Commerce, told The Associated Press that “Since yesterday, member companies have been contacting us in a state of high concern,” adding that the tension “directly impacts corporate development and sales projections; it may even threaten jobs.” Diazgranados said while business groups are bearing the brunt, “the root of the conflict lies with security agencies, not trade.”
Separately, Colombia’s ministry of mines and energy announced an indefinite suspension of all international electricity sales to Ecuador, describing it as a “preventive measure” to safeguard Colombia’s energy sovereignty and security.
Colombian Energy Minister Edwin Palma condemned Ecuador’s tariffs as “economic aggression” that he said undermines regional integration, and he pointed to a recent comparison with how Colombia responded during Ecuador’s severe energy crisis in late 2024. Palma said Colombia provided roughly 90% of its exportable power—totaling approximately 450 megawatts—to help stabilize Ecuador’s grid.