Ecuador and Colombia impose retaliatory tariffs, sparking trade war

In January, Ecuadorian President Daniel Novoa introduced tariffs of 30% to 50% on Colombian imports, citing the need to raise funds to combat drug‑related insecurity. Colombia swiftly responded with matching tariffs of 30% to 50% on goods from Ecuador, effectively halting bilateral trade.

The measures have hit thousands of companies: about 5,500 Colombian firms—spanning energy, fuels, vehicles, autoparts, chemicals, textiles and machinery—and roughly 2,000 Ecuadorian businesses in agriculture, fisheries and food processing. Analysts estimate the dispute has generated economic losses of around $340 million and jeopardized roughly 200,000 jobs in each country.