Ecuador’s conservative president announced on Monday that he would impose a 27% tariff on Mexican imports. This move comes in the wake of similar trade barriers proposed by U.S. President Donald Trump, although Trump has since paused his tariff plans on Mexico.
President Daniel Noboa explained that the tariff on Mexican goods was designed to support local manufacturers. However, it is also seen as an attempt to gain favor with Washington, particularly after the Trump administration proposed its own 25% tariff on Mexican goods.
On the same day, Trump and Mexican President Claudia Sheinbaum agreed to postpone the tariffs to allow more time for negotiations. Trump has been pressing Mexico to take stronger actions against illegal immigration and the smuggling of fentanyl across the U.S. border.
Noboa, who briefly stepped away from his re-election campaign to attend Trump’s inauguration last month, has publicly praised Trump’s victory, calling it a win for Latin America.
Ecuador’s decision to impose tariffs on Mexican imports comes amidst ongoing tensions between the two countries. Last year, Ecuador severed diplomatic relations with Mexico after Ecuadorian police raided the Mexican Embassy to arrest former Vice President Jorge Glas. The diplomatic fallout from this incident has contributed to the current strained relations between the two nations.
Ecuador’s actions were widely criticized as a violation of international law. Ecuador, however, defended its stance, stating that Glas was wanted for fraud rather than political reasons, and accused Mexico of unlawfully granting him political asylum within its embassy.
Although the two countries have limited trade, with Ecuador accounting for less than 1% of Mexico’s total exports, the diplomatic tensions have raised concerns.
Ecuador’s President Daniel Noboa, who inherited a banana empire, is campaigning for his first full term in office, after being elected 18 months ago to finish the term of former President Guillermo Lasso following his resignation.