Ecuador has announced a 27% tariff on Mexican imports, imitating recent trade measures threatened by the United States under the protectionist administration of newly inaugurated President Donald Trump.

“As we have demonstrated these days, the New Ecuador has always been open to commercial integration, but not when there is abuse,” President Daniel Noboa stated on X. “We ratify our position of signing a Free Trade Agreement with Mexico. But, until that happens and becomes a reality, we will apply a 27% tariff on the products we import, with the objective of promoting our industry and ensuring fair treatment for our producers.”

The timing of Ecuador's announcement coincides with similar trade pressures from the US, where President Trump had announced 25% tariffs on Mexican goods before subsequently delaying this action pending further negotiations. Trump's turnaround came after discussions with Mexican President Claudia Sheinbaum focused on addressing border security and drug trafficking concerns.

This trade dispute is unfolding against the backdrop of already strained Ecuador-Mexico diplomatic relations, which were severed in April 2024 following Ecuador's controversial raid on the Mexican embassy to arrest former Vice President Jorge Glas. The raid, which drew international condemnation as a violation of diplomatic protocols, occurred after Mexico granted asylum to Glas, who faces multiple corruption charges in Ecuador.

The economic impact of Ecuador's tariffs may be limited, as trade between the two nations represents less than 1% of Mexico's total exports, according to Mexican central bank data. However, with Ecuadorian elections scheduled for February 9, Noboa's decision appears strategically timed.

The move could serve dual purposes: rallying domestic support for Noboa’s re-election bid as he wraps up his election campaign while potentially currying favour with the current US administration, which centre-right Noboa has openly supported, having attended Trump's presidential inauguration in Washington.