Trump Slaps Colombia With 25% Tariffs, Sanctions in Migrant Dispute

(Bloomberg) --

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President Donald Trump ordered his administration to impose tariffs and sanctions on Colombia for refusing to allow two military planes carrying deported migrants to land, punishing a US security partner for stepping out of line with his immigration goals.

In a move that rattled global markets, Trump said in a social media post on Sunday that he would put an emergency 25% tariff on all Colombian goods coming into the US, which will be raised to 50% in a week. He also imposed travel restrictions on a range of government officials and said “Treasury, Banking and Financial Sanctions” under the International Emergency Economic Powers Act would be “fully imposed.”

“These measures are just the beginning,” Trump said. “We will not allow the Colombian Government to violate its legal obligations with regard to the acceptance and return of the Criminals they forced into the United States!”

It was unclear when the administration would issue formal orders specifying when the tariffs and sanctions would take effect, and what they would entail. Secretary of State Marco Rubio said in a statement on Sunday that he ordered a suspension of visa issuance at the US Embassy in Bogota and authorized other travel restrictions on those responsible for interfering with the flights.

Trump’s abrupt announcement rattled global markets Monday after investors were lulled into a false sense of security when he refrained last week from immediately imposing tariffs on China and other major trading partners. US equity futures slid in Asia after Wall Street had its best start to a US presidential term since the 1980s, while the greenback rose against most of its major peers, rebounding from its worst week in more than a year. The Mexican peso and South African rand led losses among emerging-market currencies.

Oil fell in early trade on Monday, with Brent dropping below $78 a barrel, as tariffs and sanctions on Colombia undermined sentiment and served as a reminder of larger trade risks ahead. Colombia is the US’s fourth-biggest source of overseas oil, topping Brazil, according to the Energy Information Administration. Other major exports include gold, coffee and flowers — a good that typically sees brisk trade around Valentine’s Day.