Ecuador’s conservative President Daniel Noboa announced on Monday a 27% tariff on Mexican imports, aiming to protect local manufacturers while possibly signaling alignment with the U.S. under President Donald Trump. The move comes as Ecuador navigates strained diplomatic ties with Mexico and seeks international economic leverage.
Ecuador’s New Tariff and Its Purpose
Noboa’s 27% tariff targets Mexican imports, intending to support Ecuador’s local manufacturers and industries. This measure echoes recent U.S. trade policies under Trump, who announced 25% tariffs on Mexican goods before pausing them to negotiate solutions to illegal immigration and fentanyl smuggling.
By imposing similar tariffs, Noboa may be positioning Ecuador favorably with Washington while reinforcing domestic industries in the face of minimal trade dependency on Mexico. Trade between the two countries represents less than 1% of Mexico’s total exports, meaning the immediate economic impact on Mexico may be limited.
Diplomatic Disputes and Strained Relations
Ecuador’s tariff announcement comes at a time when diplomatic relations with Mexico remain bitter. The two nations severed ties last year after Ecuadorian authorities entered the Mexican Embassy to arrest former Ecuadorian Vice President Jorge Glas. Glas, who had sought political asylum in Mexico’s embassy, was wanted in Ecuador on charges of fraud.
Mexico condemned the incident as a violation of international law, while Ecuador defended its actions, claiming the arrest was for criminal reasons, not political ones.
Ecuador’s Domestic Political Landscape
Noboa’s tariff move also coincides with his ongoing re-election campaign. He first became president 18 months ago, finishing the term of ex-President Guillermo Lasso. Noboa is now seeking his first full constitutional term in upcoming elections scheduled for Sunday.
As the heir to a large banana fortune, Noboa has positioned himself as a pro-business conservative leader. His support of Trump’s policies and close ties with the U.S. may play well with Ecuadorian voters who view him as a leader capable of improving Ecuador’s international standing.
Alignment with U.S. Trade Policies
Noboa’s decision mirrors Trump’s stance on tariffs and border security, suggesting a broader strategy to strengthen ties with Washington. Noboa attended Trump’s recent inauguration, calling it a victory for Latin America. His policies reflect an effort to align with Trump’s economic approach, potentially benefiting Ecuador through closer U.S. cooperation.
Ecuador’s tariff decision serves multiple purposes: protecting local industries, signaling alignment with the U.S., and potentially influencing ongoing diplomatic tensions with Mexico.
With minimal direct trade impact on Mexico, the move is more symbolic, highlighting Noboa’s effort to maintain strong international alliances and boost domestic confidence.
As Ecuador prepares for its upcoming elections, Noboa’s leadership strategy will likely be judged on how effectively he manages both economic growth and international relations.