On Sunday, the possibility of a trade war between the United States and Colombia spread, which could make coffee, flowers and raw materials more expensive for Americans, while US corn farmers and chemical companies could get the risk of selling billions of dollars.
Relations between the two countries have worsened after the South American country refused to receive US military aircraft carrying deported immigrants. In response, President Trump said on social media that he would immediately impose a 25 % tariff on all Colombian imports and increase revenue by 50 % in a week. Colombian President, Gustao Petro, threatened 50 % of his tariffs after hours.
United States is Columbia’s largest trading partner, but Columbia products make a Relatively minor minor Part of US imports. Some Columbia products are much more exposed than others.
While crude oil is still the most valuable of the United States Imports of ColombiaCalculation of $ 5.4 billion of the $ 16 billion worth of products imported by the United States in 2023, is only a small part of the total raw imports. According to the Census Bureau, Columbia contributed more than one -third of the total imports of nursery stock and 20 % of the import of coffee. This means more expensive coffee and flowers before Valentine’s Day.
Although the US economy is a huge market compared to Colombia, it also feels hurt if prices are implemented. Industries that are likely to be most likely to be affected are the supply of agriculture and raw materials that are industry building blocks. For example, US makers of petroleum products traded about $ 2.5 billion in 2023 with Colombia. The next most valuable annual exports to the country were corn ($ 1.2 billion) and chemicals ($ 1 billion).
