President Donald Trump announced on Sunday, January 26, 2025, that he would impose immediate “emergency” tariffs on all goods imported from Colombia. The move comes in response to Colombia’s refusal to accept two U.S. military flights carrying deported migrants.
Trump declared an “emergency” 25% tariff on all Colombian imports, with plans to increase it to 50% within a week. The move included visa cancellations for Colombian government officials, “along with all Allies and Supporters,” as well as intensified inspections of all Colombian nationals and cargo entering the US on what he termed “national security grounds.”
The catalyst for this action was Colombia’s denial of entry to two U.S. military aircraft carrying about 80 detained Colombian migrants.
Two U.S. military C-17 planes carrying approximately 80 Colombian migrants each were scheduled to land in Colombia on Sunday, January 26, 2025. However, Colombian President Gustavo Petro abruptly rescinded all diplomatic permissions for U.S. military and Immigration and Customs Enforcement (ICE) aircraft.
As a result, the flights were redirected overnight. A defense official speaking to NBC News confirmed that although the flights had initially received approval to land, they were halted when President Petro revoked the permissions.
The migrants could not gain entry into Colombia, resulting in the aircraft being sent back to the United States. The Mirror US reports that each flight carrying 80 immigrants incurs a cost of up to $852,000 for US taxpayers. By contrast, a flight directly chartered by the Department of Homeland Security’s Immigration and Customs Enforcement costs approximately $8,577, based on agency estimates.
“A migrant is not a criminal and must be treated with the dignity that every human being deserves,” Petro wrote on Twitter/X.
“I cannot allow migrants to remain in a country that does not want them; however, if that country sends them back, it must do so with dignity and respect—for them and for our country. We will receive our compatriots in civilian planes, without treating them like criminals. Colombia demands respect,” he emphasized. He added, “Colombia and Latin America’s dignity comes first. Migrants are human beings and bearers of rights, and they must be treated accordingly.”
In response to Trump’s tariffs, Petro announced on Twitter/X that he instructed the foreign trade minister to increase import tariffs on U.S. goods by 25%.
While Colombia is not among the largest U.S. trading partners, the tariffs could affect billions of dollars in trade. In 2022, the total trade volume between the U.S. and Colombia reached $53.5 billion annually, with the U.S. enjoying a trade surplus of $3.9 billion.
Key Affected Products from Columbia to the United States
Coffee Prices
Coffee drinkers in the U.S. are likely to see an increase in prices. Colombia is the second-largest source of coffee imports for the U.S., supplying about 20% of the coffee consumed in the country. With the new 25% tariff, which could potentially rise to 50%, Americans may face higher costs for their daily cup of coffee. This comes at a time when coffee prices have already been rising, with a 3.5% increase in 2024, outpacing the overall inflation rate.
Gasoline and Energy Costs
Petroleum is Colombia’s primary export to the U.S., valued at approximately $6 billion in 2022. The tariffs on crude oil imports could lead to increased gasoline prices at the pump for American consumers. This may result in higher transportation and energy costs across various sectors of the economy.
Fresh-Cut Flowers
The timing of these tariffs could significantly impact the floral industry, especially with Valentine’s Day approaching. Colombia is a major supplier of fresh-cut flowers to the U.S., with imports totaling $1.6 billion. Consumers may see higher prices for bouquets and floral arrangements, potentially affecting Valentine’s Day purchases.
Other Affected Products
Gold and aluminum products from Colombia may also see price increases.
Key Affected Products from the United States Columbia
Petroleum Products
- Refined petroleum is consistently the top export from the United States to Colombia, with a value of $5.31 billion in 2022.
Agricultural Products
The U.S. is a major supplier of agricultural goods to Colombia, including:
- Corn ($1.04 billion in 2022)
- Soybean meal ($766 million in 2022)
- Wheat, barley, and other grains
- Cotton
- Animal feeds
Industrial and Manufacturing Goods
- Machinery and computers
- Electrical machinery and equipment
- Aircraft and parts
- Auto parts
- Construction equipment
Chemicals and Related Products
- Fertilizers and agrochemicals
- Plastics
- Organic chemicals
Other Significant Exports
- Information technology equipment
- Medical and scientific equipment
- Pharmaceuticals
Trade Agreement Impact
The U.S.-Colombia Trade Promotion Agreement, which went into effect in 2012, has significantly boosted trade by eliminating duties on many U.S. exports. This agreement immediately removed tariffs on about 80% of U.S. consumer and industrial product exports to Colombia, with the remaining tariffs being phased out over a 10-year period.
What is a Tariff and How Do They Work?
Despite Trump’s misunderstanding of how tariffs work, the country that exports the goods does not pay the tariff tax. Tariffs are taxes imposed on imported goods entering the United States. They function as a form of trade barrier, affecting the cost and availability of foreign products in the domestic market. Here’s how tariffs work in the U.S.:
Implementation and Collection
Tariffs are typically charged as a percentage of an item’s value, though some may be fixed amounts per item. When goods arrive at U.S. ports of entry, U.S. Customs and Border Protection (CBP) administers the collection of tariffs. Importers are responsible for self-classifying their goods and declaring their value or quantity. CBP then reviews the paperwork, performs occasional audits, and collects the applicable tariffs.
Payment and Economic Impact
Contrary to common misconceptions, it’s not the exporting country that pays the tariff, but rather the importing company. For example, if a U.S. company imports goods from abroad, it’s responsible for paying the tariff to the U.S. government. However, the economic impact of tariffs often extends beyond the initial payer:
- Price Increases: Companies frequently pass on the increased costs to consumers through higher prices.
- Demand Shifts: As prices rise, demand for imported goods may decrease, potentially benefiting domestic producers.
- Supply Chain Effects: Many businesses have supply chains that cross multiple borders, and each crossing could result in higher costs due to tariffs.
Tariffs on Exports During the First Trump Administration
The tariffs imposed on the United States by China, Canada, the EU, Mexico and India during the first Trump administration had significant negative impacts on U.S. farmers, particularly those exporting agricultural products. These retaliatory tariffs were implemented in response to various tariff actions by the Trump administration, including tariffs on steel and aluminum imports, as well as specific tariffs targeting Chinese goods.
U.S. farmers experienced substantial economic losses due to retaliatory tariffs imposed by other countries in response to Trump’s trade policies:
- A U.S. Department of Agriculture study found that retaliatory tariffs reduced U.S. agricultural exports by $27 billion from mid-2018 to the end of 2019.
- Soybeans accounted for 71% of the decline, followed by sorghum and pork at 7% and 5% respectively.
- States like Iowa, Illinois, and Kansas were hit hardest, with GDP losses totaling $3.8 billion through 2019.
Financial Strain
The trade war put significant financial pressure on farmers:
- Farm bankruptcies soared as farmers lost market access abroad.
- Net farm income dropped sharply, with 42% of farmers reporting a 10-20% decrease and 29% reporting over a 20% decrease.
Government Subsidies
To mitigate losses, the Trump administration provided substantial subsidies:
