Ecuador will impose a 27% tariff on Mexican goods to ensure fair treatment for local producers, according to President Daniel Noboa. The president announced the decision on Monday, adding that while he is open to negotiating a free trade agreement with Mexico, it would not happen under “abusive” conditions. Until such an agreement is reached, the tariff will apply.
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In 2023, Ecuador imported $541 million worth of goods from Mexico, with medication making up 12.6% of those imports. Despite this, Ecuador remains a minor trading partner for Mexico, accounting for less than 0.1% of Mexico’s total exports.
This move follows US President Donald Trump’s decision to pause his threat of 25% tariffs on Mexican imports after discussions with Mexican President Claudia Sheinbaum.
Ecuador and Mexico have had tense relations recently, with diplomatic ties strained after a raid on the Mexican embassy in Quito in April 2024 to arrest Jorge Glas, Ecuador’s former vice president. Glas had sought asylum from Mexico, claiming political persecution over embezzlement charges.
Since taking office in late 2023, President Noboa has pursued a hardline approach to crime, vowing to tackle the country’s notorious criminal gangs.