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Ecuador has announced a 27% tariff on Mexican imports and a temporary border closure.
Some shit you should know before you read: Ecuador and Mexico have historically maintained diplomatic and economic ties, but relations have been strained in recent years. In 2024, tensions escalated when Ecuadorian police raided Mexico’s embassy in Quito to arrest former Ecuadorian Vice President Jorge Glas, who had been granted asylum by the Mexican government while facing corruption charges in Ecuador. The raid, widely condemned as a violation of international law, led Mexico to sever diplomatic relations with Ecuador, with many countries in the region criticizing their actions.

What’s going on now: In an announcement, Ecuadorian President Daniel Noboa said his government would impose a 27% tariff on all Mexican imports, citing the need to protect Ecuadorian industries and ensure fair treatment for local producers. Noboa justified the decision by stating that Ecuador remains open to a free trade agreement with Mexico, but only under terms that do not result in what he described as “abuse.” While he did not elaborate on the alleged unfairness, the tariff is widely seen as part of his broader economic strategy to strengthen domestic production ahead of Ecuador’s upcoming election.
President Noboa also announced a three-day border closure from February 8 to February 10, citing threats from armed groups attempting to destabilize the country. While Noboa did not specify the exact nature of the threats, Ecuador has been grappling with a surge in violence linked to organized crime and drug trafficking, making border security a critical concern.
More on trade implications: Trade between Ecuador and Mexico is relatively small. In 2023, Ecuador imported roughly $540 million worth of Mexican goods, including medications, machinery, and food products. Despite this, Mexico represents a minor trading partner for Ecuador, and conversely, Ecuador accounts for less than 0.4% of Mexico’s total exports.
During a press conference this morning, Mexican President Claudia Sheinbaum downplayed the tariffs while noting that trade between the two countries was relatively low.