QUITO, Ecuador — On Monday, President Daniel Noboa of Ecuador announced an increase in tariffs on imports from Mexico, reflecting a political maneuver similar to measures briefly proposed by U.S. President Donald Trump against Mexico. This new policy will impose a 27% tariff on various Mexican goods in an effort to strengthen local manufacturing sectors. It may also be seen as an attempt to align more closely with Washington, especially following Trump’s announcement of planned tariffs against Mexico, also set at 25%.
Noboa’s announcement coincided with an update from Trump and Mexican President Claudia Sheinbaum, who revealed that they would be pausing the planned tariffs to allow for further negotiations. Trump has been adamant about Mexico enhancing its measures to combat illegal immigration and the smuggling of fentanyl across the border, a central theme in ongoing discussions between the two nations.
The backdrop of Noboa’s tariff decision is a complex diplomatic relationship with Mexico, which has been strained since last year. A controversial incident occurred when Ecuadorian police entered the Mexican Embassy to arrest former Vice President Jorge Glas, leading to Mexico severing diplomatic ties. While Ecuador maintains that Glas was wanted for fraud and not for any political motive, this incident was viewed internationally as a breach of diplomatic norms. Mexico, on the other hand, accused Ecuador of wrongly denying Glas political asylum within its embassy.
Despite the tensions, the trade exchange between Ecuador and Mexico is relatively minor, comprising less than 1% of Mexico’s total exports, according to data from Mexico’s central bank. Noboa, who comes from a prominent banana-producing family, is currently campaigning to secure his first complete term in office after stepping in to replace ex-President Guillermo Lasso 18 months ago.
As Noboa pursues reelection, this tariff policy may serve dual purposes: fostering domestic industry and managing Ecuador’s foreign relations amidst a backdrop of geopolitical tensions in the region.
