Colombian Markets React to Global Tariff Tensions

Colombia's peso and main stock index dropped significantly following China's imposition of retaliatory tariffs on the U.S., contributing to a global trade conflict triggered by the Trump administration's tariff measures. Colombia's economic indicators mirrored regional reactions amid escalating tariff tensions.

In a swift reaction to escalating global trade tensions, Colombia's financial markets experienced a notable slump. Early Friday trading saw the Colombian peso depreciate by 3.68%, hitting a two-and-a-half-month low at 4,296.50 per dollar, while the MSCI COLCAP stock index fell by 3% to 1,606.01 points.

The downturn follows China's announcement of imposing additional 34% tariffs on U.S. goods starting April 10, a move that intensifies the trade dispute between the world's two largest economies. These retaliatory measures come as President Donald Trump's administration enacted some of the highest tariff regulations seen in over a century.

Colombia, paralleling other Latin American nations, faced a baseline U.S. tariff of 10% on its exports. However, while the region braces for the ripple effects, Colombia has yet to declare any specific counter-tariff strategy.

(With inputs from agencies.)