In a significant economic decision, Ecuador’s conservative President Daniel Noboa announced on Monday that his administration would impose a 27% tariff on imports from Mexico. This move, reminiscent of similar trade barriers proposed by former U.S. President Donald Trump, seems to target a dual objective: to strengthen local manufacturing and potentially gain favor with the U.S. government.
Noboa’s choice to raise tariffs follows Trump’s recent declaration of a planned 25% tariff on Mexican imports, although negotiations have led to a temporary pause. Trump has been vocal about his expectations for Mexico to take stronger measures against illegal immigration and fentanyl trafficking, which remain critical issues in U.S.-Mexico relations.
Interestingly, Noboa, who took a brief hiatus from his re-election campaign to attend Trump’s inauguration last month, has publicly celebrated Trump’s electoral success as beneficial for Latin America. The backdrop of this tariff increase is a strained diplomatic relationship between Ecuador and Mexico, which saw a significant downturn last year. This tension stemmed from an incident where Ecuadorian law enforcement entered the Mexican Embassy to detain former Vice President Jorge Glas, leading to the severing of diplomatic ties.
Ecuador’s actions were met with widespread criticism, perceived as a violation of international norms. The Ecuadorian government defended its stance, claiming that Glas was being pursued for fraud rather than political offenses and accusing Mexico of improperly granting him asylum within the embassy grounds.
Despite the elevated tensions, trade volumes between Ecuador and Mexico remain relatively low, constituting less than 1% of Mexico’s total exports, indicating that the economic implications of these tariffs may be limited. Noboa, who comes from a prominent banana-exporting family, is currently campaigning for his first full term in office after stepping in to complete the remaining term of former President Guillermo Lasso, who faced political challenges.
