Colombian and Ecuadorian merchants and truckers protest escalating trade war between both nations

Colombian and Ecuadorian merchants and truckers gathered at the border Tuesday to protest what has become an intensifying trade war between the two South American nations, as both sides have imposed steep tariffs that threaten regional commerce and cooperation.

Demonstrators warned that the 30% tariffs recently enacted by both countries will damage the economies of border provinces and disrupt energy supplies that flow across the frontier. The protests represent growing concerns from business owners and workers whose livelihoods depend on cross-border trade.

“Tariffs generate crises, they don’t help the economy,” said Carlos Bastidas, who leads an Ecuadorian transportation workers association. “With this protest we are hoping that both presidents eliminate those measures” and establish mechanisms for dialogue, he added.

The dispute began last month when Ecuador’s conservative President Daniel Noboa announced the implementation of 30% tariffs on Colombian goods, framing the move as a “security tax” in response to what he characterized as Colombia’s insufficient efforts to stem the flow of cocaine across their shared 586-kilometer border.

Noboa, who has actively sought closer ties with the Trump administration since taking office in November 2023, stated on social media platform X that the tariffs would remain in place until Colombia took “firm actions” to combat drug cartels operating in the border region.

Colombia’s response was swift. The government of leftist President Gustavo Petro countered with its own 30% tariffs on dozens of Ecuadorian products, including rice and automotive parts. In an escalation that could prove particularly painful for Ecuador, Colombia also announced it would halt electricity sales to its neighbor. This poses a significant challenge for Ecuador, which has relied heavily on Colombian hydroelectric power, especially after suffering serious nationwide power outages throughout early 2024.

The reciprocal tariffs took effect on February 1, creating immediate concerns for businesses operating near the border.

While the two nations share a border, they aren’t each other’s primary trading partners and produce many similar agricultural and industrial goods, including coffee, flowers, bananas, and oil. According to Colombia’s statistics agency, bilateral trade between the countries amounted to approximately $2.3 billion last year, with Colombia exporting about $1.7 billion worth of goods to Ecuador, which has roughly one-third of Colombia’s population.

However, for communities along the border, this trade relationship is vital. Edison Mena, president of a Colombian truckers association in the border city of Ipiales, emphasized that 38% of his city’s economy depends on commerce with Ecuador. The tariffs threaten to devastate these local economies caught in the crossfire of national politics.

Critics suggest that Noboa’s aggressive trade policy may serve as a distraction from Ecuador’s internal security challenges. His tariff announcement coincided with the release of alarming crime statistics showing Ecuador’s homicide rate had reached 50 murders per 100,000 residents in 2023—the highest in the nation’s recent history.

Ecuador’s security situation has deteriorated dramatically in recent years, with the homicide rate quintupling since 2020. Drug gangs from Mexico, Colombia, and elsewhere have been fighting for control of Ecuador’s ports, transforming what was once one of Latin America’s most peaceful nations into a major transit point for cocaine produced in neighboring Colombia and Peru.

The trade dispute threatens to undermine regional cooperation at a time when both nations face significant security challenges from transnational criminal organizations operating across their shared border. As protesters gather at border crossings, the economic pain caused by these policies is already being felt by communities whose livelihoods depend on the free flow of goods and services between the two countries.

Whether this trade war will achieve its stated security objectives or merely deepen economic hardship in an already troubled region remains to be seen, as citizens on both sides of the border call for dialogue and cooperation rather than economic retaliation.