President Noboa of Ecuador announced a 27% tariff on Mexican imports, aligning with similar U.S. tariff discussions under President Trump. This action is seen as an attempt to boost local manufacturing and potentially win favor with the U.S. amidst diplomatic tensions with Mexico. The trade relationship remains minimal, making the economic implications limited.
Ecuador’s conservative President Daniel Noboa has announced a new 27% tariff on Mexican imports, aiming to support local manufacturing. This decision mirrors recent tariff discussions in the U.S., where President Donald Trump indicated a potential 25% tariff on Mexico, pending ongoing negotiations about immigration and drug smuggling issues.
Noboa’s tariff strategy may also be an effort to curry favor with Washington, especially since he recently attended Trump’s inauguration, viewing it as a triumph for Latin America.
This move has surfaced amid a tumultuous diplomatic relationship with Mexico, following a past incident where Ecuadorian police entered the Mexican Embassy to arrest former Vice President Jorge Glas, stirring accusations of a breach of international law.
Despite the tensions, the economic ties between Ecuador and Mexico are limited, constituting less than 1% of Mexico’s total exports as per the Mexican central bank. Noboa, who comes from a prominent banana-exporting family, is currently campaigning for a complete term in the upcoming elections, having assumed office 18 months ago after his predecessor’s abrupt resignation.
The recent tariff imposition by Ecuador against Mexico signals a shift towards protectionist policies reminiscent of the Trump administration’s approach to trade. Such actions may reflect a desire to increase local manufacturing while simultaneously positioning Ecuador favorably with the United States amidst ongoing negotiations over immigration and law enforcement practices. Additionally, the historical context of the Ecuador-Mexico diplomatic rift enhances the gravity of this economic decision.
In summary, President Noboa’s announcement to impose tariffs on Mexican goods is indicative of both economic strategy aimed at supporting local industries and a potential alignment with U.S. trade policies. The backdrop of strained Ecuador-Mexico relations adds another layer of complexity, but overall trade impact is minimal given the low volume of exports between the two nations.
Original Source: apnews.com
