President Donald Trump’s newly announced tariffs on goods from Colombia could drive up the price of some items Americans buy every day.
Trump said in a social media post Sunday that he would immediately impose a blanket 25% tariff on all goods coming into the U.S. from Colombia, among other sanctions. The announcement came after Colombia rebuffed a U.S. military flight of deported migrants. Trump also said that the tariffs would soar to 50% in a week.
A tariff is effectively a tax on goods when they are brought into a country. While the importing company pays the tax, the cost is often passed on to other parties in the form of higher prices, including U.S. consumers.
What items will be hit?
Colombia is not one of the U.S.′ largest trading partners, but steep tariffs could still impact billions of dollars of economic activity. The Office of the U.S. Trade Representative puts total bilateral trade between the U.S. and Colombia at $53.5 billion annually as of 2022, with the U.S. having a trade surplus of $3.9 billion.
According to data compiled by the Observatory of Economic Complexity, or OEC, petroleum is the largest export of Colombia to the U.S., at roughly $6 billion in 2022.
Oil is a two-way trade between the countries, as refined petroleum from the U.S. is the biggest export to Columbia.
The second-largest export from Colombia was coffee, at $1.8 billion, according to OEC. Colombia accounts for about 20% of coffee shipped to the U.S. and is the second-largest source of imports after Brazil, according to the U.S. Department of Agriculture.
Tariffs on coffee could squeeze Americans who are already having to pay up for their drinks. The price of coffee rose 3.8% in 2024, above the overall rate of inflation, according to the Bureau of Labor Statistics.
Cut flowers were the third biggest import from Colombia, at $1.6 billion. Other items being regularly shipped to the U.S. from Colombia include gold and aluminum structures.
International tensions
The tariffs on Colombia are a ripple effect of the Trump administration’s crackdown on undocumented migrants in the U.S. Mexico and Brazil are among other countries that have raised objections to the U.S. plan to send migrants back to their former homes.
During his campaign, Trump touted tariffs as a way to raise revenue for the government and to force other countries to go along with U.S. policies.
“We will not allow the Colombian Government to violate its legal obligations with regard to the acceptance and return of the Criminals they forced into the United States,” Trump said in a Truth Social post.
Meanwhile, rival China has been increasing its trade relations with Colombia, and it is now the country’s No. 2 trading partner. The eruption of a trade dispute with Columbia over Trump’s immigration policies could provide an opening for China, which is thirsty for Colombia’s oil as well as its coffee.
— CNBC’s Steve Liesman contributed reporting.
