Thursday, July 3, 2025

US, Colombia Strike Deal to Avert Trade War

The United States and Colombia averted a trade conflict Sunday night after Colombia agreed to accept deportees on US military aircraft, a key demand from President Trump who had threatened steep tariffs on the South American nation.

White House Press Secretary Karoline Leavitt announced Colombia had accepted “all of President Trump’s terms,” including the unrestricted return of Colombian citizens who are in the US illegally. In exchange, the US will hold back draft orders that would have imposed escalating tariffs starting at 25% on Colombian goods.

The agreement came hours after Trump had threatened additional penalties including visa bans on Colombian officials and enhanced border inspections. The State Department had already suspended visa processing at the US embassy in Bogota. (White House officials initially had trouble spelling “Colombia”).

Colombian Foreign Minister Luis Gilberto Murillo confirmed the agreement in a statement Sunday evening, and said Colombia would make its presidential aircraft available for returning citizens. While his statement didn’t specifically address military flights, it didn’t contradict the White House announcement. Murillo said he would travel to Washington for follow-up meetings.

Earlier Sunday, Colombian President Gustavo Petro had strongly opposed military deportation flights, comparing them to Nazi tactics. 

He later offered his presidential plane to facilitate what he called the “dignified return” of Colombian citizens.

Colombia is the US’s third-largest Latin American trading partner, with bilateral trade reaching $33.8 billion in 2023. US companies employ more than 90,000 workers in Colombia, particularly in the manufacturing and mining sectors.

The State Department will maintain visa restrictions and enhanced inspections until Colombia demonstrates compliance through successful deportation flights, according to Leavitt’s statement.

Petro initially shared Leavitt’s announcement, but as Axios notes, seems to have already rescinded or deleted it. Before the agreement was announced, he posted a lengthy statement on X denouncing Trump’s “blockade” and announced 50% retaliatory tariffs on American goods.

The agreement (or dispute on pause?) is the latest in a string of tensions with Latin American nations over Trump’s immigration crackdown, which he declared a national emergency upon taking office last week. Mexico recently refused US military deportation flights, while Brazil protested the treatment of its citizens during a commercial deportation flight.

Related: Trump’s Tariff Threat Is Back! 25% Tariff On Mexico, Canada By Feb 1 


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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