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    • The Fed meeting is only the start of an exciting week for investors.
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    Home » Trump suspends high tariffs and declares victory in the deportation battle with Colombia.
    Economy

    Trump suspends high tariffs and declares victory in the deportation battle with Colombia.

    January 28, 2025Updated:January 30, 2025No Comments
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    Following a dramatic day, President Donald Trump withdrew his threat of high punitive tariffs against Colombia after the South American country consented to accept U.S. military deportation flights.

    Karoline Leavitt, the White House press secretary, declared late Sunday night that “Colombia has agreed to all of President Trump’s terms, including the unrestricted acceptance of all illegal aliens from Colombia returned from the United States, including on U.S. military aircraft, without limitation or delay.” Leavitt stated that the tariff orders issued by Trump would be “held in reserve but not signed.” She stated that after “the first planeload of Colombian deportees is successfully returned,” the limitations on visas for Colombian officials and the increased border checks of Colombian goods will be lifted.

    After threatening to apply 25% tit-for-tat taxes on U.S. goods, the Colombian government confirmed the settlement.

    In a statement published on X, Colombian Foreign Minister Luis Gilberto Murillo declared, “We have overcome the impasse with the United States government.” “We will continue to receive Colombians who return as deportees, guaranteeing them decent conditions as citizens subject to rights.”

    Trump threatened to impose retaliatory tariffs and other measures on Colombia earlier in the day after that nation refused to let two military planes carrying deported migrants land.

    If it had been implemented, the cost of everything from coffee to fresh-cut flowers to gasoline might have gone up for American consumers.

    Trump stated in a social media post on Sunday that the United States will apply 25% tariffs on Colombian imports right away, with the possibility of a 50% increase within a week. Additionally, he announced the implementation of Treasury, banking, and financial sanctions, a travel restriction, the revocation of visas for Colombian government officials and sympathizers, and increased border inspections of Colombian citizens and commodities.

    Trump stated, “These measures are just the beginning,” on Truth Social. “We will not allow the Colombian Government to violate its legal obligations with regard to the acceptance and return of the Criminals they forced into the United States.”

    This came after President Gustavo Petro of Colombia declared that his country would not allow U.S. military deportation planes to land unless the deportees received humane treatment.

    “Colombian migrants cannot be treated like criminals by the United States. In a translated post on X, Petro stated, “I forbid the entry of North American planes carrying Colombian migrants into our territory.” “The U.S. must establish a protocol for the dignified treatment of migrants before we receive them.”

    The Trump administration, which proclaimed immigration a national emergency shortly after Trump’s inauguration on Monday, is using military aircraft to transport deportees, a novel practice. Brazil also denounced the treatment of its people being deported from the United States, who were allegedly handcuffed on a commercial flight, and Mexico refused to let a military deportation plane land last week.

    The U.S. commerce Representative estimates that as of 2022, U.S. commerce with Colombia was worth around $53.5 billion. According to the U.S. State Department, Colombia’s top commercial partner and recipient of 34% of its exports is the United States, with whom it has a free-trade agreement.

    However, such high tariffs threatened to raise the cost of several commonplace American goods. About one-third of Colombia’s exports to the United States are crude oil, with coffee and fresh-cut flowers being additional significant exports.

    According to data from the U.S. Energy Information Administration, Colombia was the fourth-largest supplier of crude oil to the United States as of October 2024, surpassing Saudi Arabia but trailing Canada, Mexico, and Venezuela.

    According to the USDA, Colombia supplies around 27% of the unroasted coffee imported into the United States.

    Additionally, just in time for Valentine’s Day, the tariffs threatened to raise the cost of flowers.

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