Ecuador’s conservative President, Daniel Noboa, recently announced a 27% tariff on Mexican imports, citing a desire to support local manufacturers. This decision reflects a similar stance taken by U.S. President Donald Trump, although the Trump administration has since paused its own proposed tariffs on Mexico. The move by Noboa, who has expressed admiration for Trump, could be seen as an attempt to align with U.S. interests. The temporary halt in tariffs by Trump and Mexican President Claudia Sheinbaum is aimed at facilitating further negotiations, with Trump emphasizing the need for Mexico to address issues like illegal immigration and fentanyl smuggling.

This development comes in the midst of a separate diplomatic rift between Ecuador and Mexico, stemming from an incident where Ecuadorian authorities entered the Mexican Embassy to arrest former Vice President Jorge Glas. While Ecuador defended its actions as a response to fraud allegations against Glas, Mexico criticized the breach of international law and accused Ecuador of interfering with the asylum granted to Glas.

Despite the tensions and trade measures, the economic impact is expected to be limited due to the relatively small trade volume between the two countries, accounting for less than 1% of Mexico’s total exports. Noboa, a prominent figure in Ecuador as the heir to a banana fortune, is currently campaigning for his first full presidential term after assuming office to complete the tenure of former President Guillermo Lasso.