Sunday, January 26, 2025

How Disagreements Between The US and Columbia Over Immigration Policy Can Impact US Consumers

 President Trump has said that the US will impose retaliatory measures against Columbia in response to their blocking of two migrant deportation flights being carried out by the US military. The measures include a 25% tariff on all Columbian goods entering the US, which would increase to 50% after one week, a travel ban and visa revocations against Columbian officials, as well as emergency treasury, banking and financial sanctions.

These actions would be taken against the US’ third largest trading partner in Latin America. The US and Columbia share a 2006 trade agreement, in 2023, there was $33.8 billion worth of two-way trade between the two countries, including a $1.6 billion US trade surplus. The biggest imports from Columbia to the US include crude oil, gold, coffee, and cut roses.

Columbia’s resistance to US migrant deportations are an example of growing discontent amongst the rest of Latin America to US immigration policy. Along with condemnation and resistance from Columbia’s President, Brazil’s foreign ministry spoke out against the policy, calling it “degrading treatment”. Additionally, Mexico refused a request allowing a US military aircraft carrying migrants to land, though President Trump has not taken action against them, the US’ largest trading partner.

It will be interesting to watch how the US will respond to Latin American resistance to its immigration policies, especially against countries that conduct significant trade with the US. Tariffs on products such as coffee and crude oil could have inflationary effects, resulting in US consumers seeing higher prices at both the grocery store and gas pump.

 

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