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In the space of several hours that rattled global markets, US President Donald Trump announced sweeping tariffs on Colombia before abruptly pulling the threat after reaching a deal on the return of deported migrants.
The White House claimed victory late on Sunday, saying Colombia had “agreed to all of President Trump’s terms” without delay, including the acceptance of deportees on US military aircraft. Colombian President Gustavo Petro had earlier refused to allow two military planes carrying deported migrants to land, objecting to the use of shackles and handcuffs on detainees.
Colombian Foreign Affairs Minister Luis Gilberto Murillo said in a video that both countries overcame the diplomatic “impasse,” adding that the president’s airplane will be ready to take the Colombians who were set to be deported back to the country.
“We will continue receiving the Colombians who return as deportees, guaranteeing them conditions of dignity,” Murillo said.
Trump’s move to quickly threaten tariffs on billions of dollars in trade in oil, cut flowers, coffee and more served as a stark reminder of his eagerness to use economic tools to achieve geopolitical goals. But his rapid U-turn also illustrated why the president faces questions about his willingness to make good on his threats.
That uncertainty left a cloud hanging over global markets even after the decision was reversed. The weekend announcement made it clear that tariffs will be the first weapon Trump turns to for policy disagreements, while the rapid resolution will do little to quell investor nerves over their usage.
The Mexican peso and South African rand led losses among emerging-market currencies as the dollar strengthened versus most of its major peers. The greenback had endured its worst week in more than a year last week as Trump refrained from immediately imposing tariffs on China and other major trading partners — moves that would favor a stronger US currency.
Earlier in the day, Trump ordered his administration to impose tariffs and sanctions on Colombia for refusing to allow the military planes to land. In a social media post, Trump said he would put an emergency 25% tariff on all Colombian goods coming into the US, which will be raised to 50% in a week, as well as travel curbs and unspecified sanctions.
Secretary of State Marco Rubio then ordered a suspension of visa issuance at the US Embassy in Bogota and authorized other travel restrictions on those responsible for interfering with the flights. Those travel curbs, as well as enhanced inspections by customs officials, would remain in effect until the first planeload of Colombian deportees is successfully returned, White House Press Secretary Karoline Leavitt said in a statement Sunday night.
“Today’s events make clear to the world that America is respected again,” she said, adding that the order of tariffs and sanctions would remain unsigned “unless Colombia fails to honor this agreement.”
Trade in goods between the US and Colombia was worth $33.5 billion in the first 11 months of 2024, according to US trade data. The US had a billion-dollar trade surplus with Colombia in that time.
Between January and November 2024, Colombian exports to the US reached $13 billion, a near 8% increase compared with the same period in 2023 and about a third of the nation’s total overseas sales. Colombia is the US’s fourth-biggest source of overseas oil, topping Brazil, according to the Energy Information Administration. Other major exports include gold, coffee and flowers — a good that typically sees brisk trade around Valentine’s Day.
The stakes would be much higher if Trump uses the same tactics with Mexico, with total commerce more than double that of US-Colombia trade. Trump has said he’s considering similar tariffs on Mexican goods over its compliance with his border policies.
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