Ecuador Escalates Trade Tensions with Colombia: Tariffs Hike to 50%

Ecuador is set to raise tariffs on Colombian imports to 50% to address a trade deficit and drug trafficking security concerns. This move follows a previous 30% tariff and is seen as a security fee. Colombia had responded with reciprocal measures and now faces heavy import duties.

Ecuador will increase tariffs on Colombian imports to 50% starting March 1, escalating trade tensions as announced in a government statement on Thursday. Previously, a 30% tariff was imposed, citing trade deficits and border security issues.

The move, labeled as a security fee by Ecuador's production ministry, arises from Colombia's alleged lack of cooperation in tackling drug trafficking. The dispute has prompted both nations to seek involvement from the Andean Community of Nations.

Colombia, meanwhile, has dismissed claims of inadequate security collaboration. It had previously retaliated with tariffs on Ecuadorean goods and additional bans on food products.

(With inputs from agencies.)