Ecuador’s President Daniel Noboa has raised tariffs on Mexican imports to 27%, mirroring Trump-era policies. This tariff aims to boost local industry, also reflecting a desire for closer ties with the U.S. Amid ongoing diplomatic tensions with Mexico, the trade relationship remains weak, with minimal economic impact from the tariffs.

Ecuador’s President Daniel Noboa announced on Monday a significant increase in tariffs on Mexican imports, establishing a 27% tariff designed to support local manufacturers. This decision reflects a strategy reminiscent of the trade policies previously contemplated by former U.S. President Donald Trump. Simultaneously, this move may be an attempt by President Noboa to cultivate favorable relations with the current U.S. administration, which had recently proposed a 25% tariff on Mexican goods as well.

This announcement takes place amidst a strained diplomatic situation between Ecuador and Mexico, a rift that occurred after Ecuadorian law enforcement forcibly entered the Mexican Embassy to detain former Vice President Jorge Glas. Ecuador maintains that Glas was pursued for fraud and challenges Mexico’s previous decision to grant him asylum, which led to a severing of diplomatic ties last year. Consequently, the trade volume between Mexico and Ecuador remains minimal, comprising less than 1% of Mexico’s total exports, which reduces the economic impact of this tariff decision.

In conclusion, President Noboa’s newly imposed tariffs on Mexican imports signal a strategic move that resonates with Trump’s previous trade measures while simultaneously addressing local economic concerns. This action, however, is set against a backdrop of ongoing diplomatic tensions between the two nations, suggesting a complex interplay between trade policy and international relations. Notably, the economic significance of this measure remains limited given the minimal trade volume involved.

Original Source: apnews.com