In echo of Trump, Ecuador announces tariff on Mexican imports

• Ecuador is now entering the tariff fray. Its president announced that it is levying a 27% fee on Mexican goods entering the country.
• The two countries have been at odds, diplomatically, since the arrest of an Ecuadorian official last year, inside the Mexican Embassy.
• The president of Ecuador is an ally of Donald Trump who attended the inauguration and is now up for reelection himself on Sunday.

The president of Ecuador, Daniel Noboa, entered the tariff fray on Monday, Feb. 3. He announced that his country is slapping a 27% levy on Mexican goods coming into the South American country.

Why is Ecuador targeting Mexico?

Noboa said the move is aimed at boosting local manufacturers. However, some believe it might be an attempt to curry favor with the Trump administration.

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On Monday, President Trump announced a 30-day pause on tariffs with Mexico after it agreed to send an additional 10,000 troops to the U.S.-Mexico border, helping to stop the flow of migrants crossing into the United States illegally.

What is the connection to the Trump administration?

Noboa attended the Trump inauguration last month in Washington and called Trump’s election win a victory for Latin America.

Why are relations between Ecuador and Mexico strained?

Ecuador is currently locked in a diplomatic dispute with Mexico, stemming from the arrest of former Ecuadorian Vice President Jorge Glas last year. Police broke into the Mexican Embassy to take him into custody.

Ecuador says he’s wanted for fraud and that Mexico illegitimately granted him political asylum. Critics accused Ecuador of breaking international law.

Will the tariffs have a big impact?

Trade between the countries is now reportedly very low. The Mexican central bank indicates that exports to Ecuador amount to less than 1% of the country’s total exports.

Noboa is running in the national election on Sunday, Feb. 9, hoping to win a full term after he took over 18 months ago for former President Guillermo Lasso.