US President Donald Trump speaks to the media after signing government orders within the Oval Workplace of the White Home in Washington, DC, on Jan. 23, 2025.
Roberto Schmidt | AFP | Getty Photos
President Donald Trump’s newly introduced tariffs on items from Colombia may drive up the value of some objects People purchase on daily basis.
Trump stated in a social media put up Sunday that he would instantly impose a blanket 25% tariff on all items coming into the U.S. from Colombia, amongst different sanctions. The announcement got here after Colombia rebuffed a U.S. army flight of deported migrants. Trump additionally stated that the tariffs would soar to 50% in per week.
A tariff is successfully a tax on items when they’re introduced into a rustic. Whereas the importing firm pays the tax, the associated fee is commonly handed on to different events within the type of larger costs, together with U.S. shoppers.
What objects shall be hit?
Colombia is just not one of many U.S.’ largest buying and selling companions, however steep tariffs may nonetheless influence billions of {dollars} of financial exercise. The Workplace of the U.S. Commerce Consultant places whole bilateral commerce between the U.S. and Colombia at $53.5 billion yearly as of 2022, with the U.S. having a commerce surplus of $3.9 billion.
Based on knowledge compiled by the Observatory of Financial Complexity, or OEC, petroleum is the biggest export of Colombia to the U.S., at roughly $6 billion in 2022.
Oil is a two-way commerce between the international locations, as refined petroleum from the U.S. is the largest export to Columbia.
The second-largest export from Colombia was espresso, at $1.8 billion, in accordance with OEC. Colombia accounts for about 20% of espresso shipped to the U.S. and is the second-largest supply of imports after Brazil, in accordance with the U.S. Division of Agriculture.
Tariffs on espresso may squeeze People who’re already having to pay up for his or her drinks. The value of espresso rose 3.8% in 2024, above the general price of inflation, in accordance with the Bureau of Labor Statistics.
Reduce flowers had been the third greatest import from Colombia, at $1.6 billion. Different objects being commonly shipped to the U.S. from Colombia embrace gold and aluminum constructions.
Worldwide tensions
The tariffs on Colombia are a ripple impact of the Trump administration’s crackdown on undocumented migrants within the U.S. Mexico and Brazil are amongst different international locations which have raised objections to the U.S. plan to ship migrants again to their former properties.
Throughout his marketing campaign, Trump touted tariffs as a solution to increase income for the federal government and to power different international locations to associate with U.S. insurance policies.
“We is not going to enable the Colombian Authorities to violate its authorized obligations with regard to the acceptance and return of the Criminals they pressured into the USA,” Trump stated in a Fact Social put up.
— CNBC’s Steve Liesman contributed reporting.
