U.S. Sanctions on Colombia: Averted Tariffs and Diplomatic Agreements

On January 26, 2025, U.S. President Donald Trump announced potential trade sanctions on Colombia, including a 25% tariff on imports, following Colombian President Gustavo Petro’s decision to block certain deportation flights. However, later that evening, both the White House Press Secretary and the Colombian Ministry of Foreign Affairs confirmed that Colombia had accepted the proposed terms, leading to the suspension of tariffs. The agreement ensures that sanctions will only be enacted if Colombia fails to meet compliance requirements.

Colombia and the U.S.: A Strong Trade Partnership

Colombia and the United States have maintained a Free Trade Agreement (FTA) since May 2012, making the U.S. Colombia’s primary trading partner. According to the National Association of Foreign Trade of Colombia (ANALDEX), 30% of Colombia’s exports between January and November 2024 were destined for the U.S.

Among Colombia’s top export products, coffee accounts for 9.2% of total shipments to the U.S., as reported by the National Administrative Department of Statistics of Colombia (DANE).

Colombian Coffee Exports on the Rise

The agricultural sector—particularly food and beverages—is a key driver of Colombia’s export growth. In 2024, this sector expanded by 12.5%, with coffee, tea, and cocoa exports increasing by 18.3%, according to ANALDEX.

Germán Bahamón, president of the National Federation of Coffee Growers of Colombia (FNC), highlighted that Colombian coffee production reached its highest level in a decade during the second half of 2024. Despite climate challenges such as droughts, Colombian coffee cultivation had a standout year.

Colombia’s Key Role in the U.S. Coffee Market

On January 27, 2025, the National Federation of Coffee Growers of Colombia (FNC) and the National Coffee Association of the United States (NCA) released a joint statement emphasizing that Colombia is the second-largest supplier of green coffee to the U.S., contributing $343 million annually to the American economy. With 70% of U.S. adults consuming coffee, both organizations stressed the importance of sustaining strong coffee trade relations to support economic stability and combat inflation.

Historic Highs in Coffee Prices

By the last week of January 2025, coffee prices hit a new historic high, with the C-price reaching $3.73 per pound. Several factors contributed to this price surge, including:

• Increased global coffee demand
• Rising production costs
• Weather-related harvest reductions (droughts, frosts, and flooding)
• Higher transportation expenses and logistical challenges
  

🔗Understand the Factors Behind the Coffee Price Surge

Forest Coffee: Commitment to Sustainability and Fair Trade

At Forest Coffee, we celebrate the restoration of Colombia-U.S. diplomatic relations and reaffirm our commitment to sustainability. Through initiatives like the Reforest Project, we aim to plant 17,000 native trees in coffee-growing regions such as Tolima and Caldas, helping to mitigate the effects of climate change.

🔗Discover how Forest Coffee is commited to build a sustainable future for coffee

We continue to empower Colombian coffee farmers, ensuring they receive fair prices and the tools needed to elevate their coffee quality. By guiding our partners in strategic sourcing decisions, we remain dedicated to supplying the highest-quality Colombian coffee to the global market.

For further reference and verification, the following sources were used to compile the information in this article:

• CNN Español. (January 26, 2025). "Trump announces tariffs on Colombia after deportation flight dispute." Retrieved from CNN Español.
  
• The New York Times. (January 26, 2025). "Petro and Trump: The deportation conflict and trade tariffs." Retrieved from The New York Times.
• ANALDEX. (January 13, 2025). "Monthly Export Report: November 2024." Retrieved from ANALDEX.
• La República. (January 2025). "National Federation of Coffee Growers reassures markets after Colombia-U.S. trade crisis." Retrieved from La República.
• Germán Bahamón. (January 2025). "Coffee continues to drive Colombia’s economic growth." Retrieved from La República.
• La República. (January 2025). "Coffee prices break records, maintaining highest market value in history." Retrieved from La República.