Mon Jan 27 14:59:18 UTC 2025: ## Colombia Averts Trade War with US, Agrees to Accept Deportations

**Bogota/Washington D.C.** – Colombia has reversed its initial refusal to accept deported immigrants from the United States, averting a potential trade war with the Trump administration. After President Gustavo Petro initially rejected the use of US military aircraft for deportations, citing concerns over the treatment of returning Colombians, he later agreed to facilitate their “dignified return.”

This dramatic U-turn follows threats from former President Donald Trump to impose significant tariffs on Colombian goods, potentially impacting key exports like crude oil, coffee, and cut flowers. The White House confirmed that these tariffs, set at 25% initially and escalating to 50%, were fully drafted and ready for implementation if Colombia didn’t comply.

Colombia’s heavy reliance on US trade – the US is its largest trading partner, importing $16.1 billion worth of Colombian goods in 2023 – played a crucial role in the decision. While Colombia exports a significant portion of its goods duty-free under a trade agreement, the threat of tariffs posed a severe risk to its economy, which relies on the US market for approximately one-third of its exports (around 4% of its GDP).

The potential impact of the threatened tariffs extended beyond Colombia’s economy. Higher tariffs on Colombian coffee, for example, would likely increase prices for US consumers. Conversely, retaliatory tariffs by Colombia could harm US businesses exporting goods such as refined petroleum and corn to Colombia. The US also holds a substantial trade surplus with Colombia, exceeding $1.5 billion.

While Petro initially announced retaliatory tariffs of 25% on US imports, the Colombian government ultimately opted to avoid the economic fallout of a full-blown trade war. The agreement removes the immediate threat of escalating tariffs and maintains crucial trade relations between the two nations. The US also plays a significant role in Colombian remittances and foreign aid.

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