Economy

US-Colombia trade war averted: Trump and Petro reach deal on deported migrants and tariffs

Late Sunday, US President Donald Trump and Colombian President Gustavo Petro narrowly avoided a potential trade war after the White House announced a deal in which Colombia agreed to a key US immigration demand.

Colombia will now allow US military aircraft to carry deported migrants back to the South American nation.

This deal followed President Trump’s earlier threat to impose 25% tariffs and sanctions on Colombia for refusing to accept deported migrants as part of the US immigration policy.

The agreement from Colombia came after those threats, resolving the dispute for now.

Colombia’s compliance with US demands

The White House confirmed that Colombia had agreed to President Trump’s stipulations, which include the unconditional reception of all deported migrants, including those arriving on US military planes.

According to the statement, the Colombian government has committed to accepting all “illegal aliens from Colombia” returning from the US without delay.

The White House also stated that draft tariffs and sanctions on Colombia would remain in reserve but would only be enacted if Colombia fails to meet the terms of the agreement.

Colombian officials expressed their commitment to supporting the repatriation of deported individuals, with the Colombian government preparing the presidential plane for deportation flights.

While the statement did not explicitly reference military aircraft, it aligned with the White House’s announcement, showing ongoing diplomatic coordination.

In the coming days, Colombian officials, including the ambassador to the US, will visit Washington to discuss the next steps, further solidifying the bilateral relationship.

The Trump administration had threatened to impose 25% tariffs on all Colombian goods entering the US, with the possibility of escalating to 50% within a week.

There were also concerns about a travel ban on Colombian officials, visa revocations, and potential financial sanctions against Colombia’s treasury and banks.

With Colombia being the US’s third-largest trade partner in Latin America, such measures would have had severe economic consequences for both nations.

This agreement highlights the intersection of immigration policy and international trade, demonstrating how diplomacy can resolve economic tensions.

Both countries have shown a willingness to cooperate on migration issues, a priority for the US as it continues to face rising immigration concerns.

The US and Colombia will likely continue to navigate the complexities of their relationship, balancing immigration enforcement with trade cooperation.

This deal sets the stage for future discussions aimed at addressing migration concerns and fostering mutually beneficial trade relations.

By avoiding a trade war, the US and Colombia not only prevent immediate economic disruption but also deepen diplomatic ties, laying the foundation for future collaboration on both migration and trade.

The post US-Colombia trade war averted: Trump and Petro reach deal on deported migrants and tariffs appeared first on Invezz

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