Following Trump’s Lead, Ecuador Hits Mexico with Tariff – Pauses After Trump Pauses
Ecuador recently imposed a temporary 27% tariff on goods from Mexico, a decision announced by President Daniel Noboa.The tariff aimed to support local manufacturers but was also seen as an attempt to curry favor with washington. This move comes after Ecuador’s imports from Mexico reached $541 million in 2023, primarily consisting of medication. Though, following a negotiation delay regarding tariffs between former President Trump and Mexico’s President Claudia Sheinbaum, Noboa rescinded the tariff shortly after its proclamation.
Noboa, who is facing re-election soon, has focused on issues such as fighting crime and corruption since taking office. His use of military power in governance has been noted positively by political analysts. The context for this tariff action is strained relations between Ecuador and Mexico, exacerbated by a controversial police raid last year at the Mexican embassy in Ecuador, where a former vice president seeking asylum was apprehended.The situation reflects ongoing complexities in regional trade dynamics and diplomatic relationships within latin America.
Ecuador on Monday imposed and then rescinded a tariff on goods from Mexico.
Ecuadorian President Daniel Noboa, who attended President Donald Trump’s inauguration in a show of support for the American leader, announced Monday he was slapping a 27 percent tariff on Mexican imports, according to the Associated Press.
The South American leader said the action would help local manufacturers, but AP’s report offered the idea that he was “seeking favor with Washington.”
In a Spanish-language post on X, Noboa said he would be happy to have a free trade deal with Mexico but “not when there is abuse,” according to CNN.
Ecuador’s 2023 imports from Mexico totaled $541 million, with medication being the largest single item.
From Mexico’s perspective, Ecuador is a tiny blip that accounts for less than 0.1 percent the value of Mexico’s exports.
Ecuador later revoked its action. On Monday, Trump announced that his planned tariff against Mexico was being delayed.
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” Trump wrote on .
“We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” Trump wrote.
Noboa is up for election on Sunday, the AP reported.
As noted by Reuters, his major focus has been fighting crime and corruption.
Relations between Mexico and Ecuador have been strained since last year’s raid in which Ecuador’s police hauled a former Ecuadorian vice president from the Mexican embassy, CNN reported.
Jorge Glas, a former vice president who had been convicted of corruption, had been granted political asylum by Mexico.
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