Colombia Changes Position on US Deportations After Facing Tariff Pressure from Trump

Colombia narrowly avoided a full-blown trade conflict with the United States on January 26, 2025, after agreeing to receive deported Colombians on US military aircraft "without limitation or delay." The agreement came after former US President Donald Trump threatened to impose severe tariffs on Colombian exports. Initially, Colombian President Gustavo Petro had opposed the return of deportees under the revised US immigration policy, but growing economic pressures forced a reversal of his stance.

Trump's administration had warned that if Colombia did not comply, tariffs on Colombian goods could rise to 25%, with a possible escalation to 50% within a week. Petro, in response, had threatened retaliatory tariffs on US imports. However, recognizing Colombia’s heavy reliance on US trade, Petro ultimately stepped back, reaffirming the country’s commitment to ensuring a “dignified return” of its nationals.

Colombia’s Trade Dependence on the US

• The United States is Colombia’s largest trading partner. Under the US-Colombia Trade Promotion Agreement (2012), most Colombian exports enter the US duty-free.
• In 2023, Colombia exported $16.1 billion worth of goods to the US. However, Colombia’s trade significance to the US is much smaller, ranking only 26th among its import partners.
• The US enjoys a $1.5 billion trade surplus with Colombia, further solidifying its economic leverage.

Major Colombian Exports to the US

• Crude Oil: Colombia’s largest export, valued at $6.05 billion in 2022, accounts for 4% of total US oil imports. Comparatively, Canada and Mexico supply 60% and 10%, respectively.
• Coffee: Colombia is the second-largest supplier of coffee to the US, contributing 20% of total coffee imports. Higher tariffs could make coffee more expensive for American consumers.
• Cut Flowers: Colombia remains the largest exporter of cut flowers to the US, a key segment of its trade.

Potential Impact of Retaliatory Tariffs

If Colombia had imposed retaliatory tariffs, it could have affected key US exports:

• Refined Petroleum: The US exported $5.31 billion worth of refined petroleum to Colombia in 2022.
• Corn: Over $1 billion worth of corn exports to Colombia could have been impacted.

Other Economic Ties Between the US and Colombia

• Foreign Investment: The United States is the largest foreign investor in Colombia, with over 450 US companies engaged in manufacturing and mining projects.
• Remittances: Many Colombians working in the US send money back home, accounting for 2.4% of Colombia’s GDP in 2024.
  • The Migration Data Portal reported that the US provided 30% of total remittances to Colombia in 2023, amounting to $3 billion.
• US Aid: Colombia receives financial assistance from the US for anti-drug operations and managing the Venezuelan refugee crisis.

Trump’s Tariff Threats and Petro’s Response

• Trump had warned of a 25% tariff on Colombian goods, increasing to 50% within a week.
• Additional sanctions were threatened, including a travel ban and visa revocations for Colombian officials.
• In response, Petro announced a 25% tariff on US imports, stating on X (formerly Twitter):
  • “I am informed that you impose a 50% tariff on the fruits of our human labor to enter the United States, and I do the same.”
• He also criticized Trump directly, saying:
  • “I don’t shake hands with white enslaver…”

Resolution: Colombia Avoids a Trade War

Hours later, the Colombian government issued a clarification, stating that the dispute had been resolved and that Colombia would accept deported migrants from the US. The statement affirmed a commitment to ensuring their “dignified return” while maintaining stable trade relations with the United States.

Despite this temporary resolution, the White House reiterated that the proposed tariffs are “fully drafted” and could still be enforced if Colombia fails to comply with the new deportation agreement.

Source: The Indian Express