Trump’s tariffs hit Colombia: manufactures, flowers and coffee among the hardest hit

U.S. President Donald Trump recently imposed a 10% tariff on imports from Colombia. However, some key products were exempted from this measure. These include oil and gold, which account for approximately half of Colombia’s exports to the United States. In addition, coal was also excluded from Trump’s tariffs.

Although these exemptions partially alleviate pressure on bilateral trade, other important goods such as value-added products were not included in the list of exemptions, which could have a serious impact on domestic industry.

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Exempted Colombian goods

According to the category of tariff exclusions established by the U.S. government, several products exported by Colombia were exempted from Trump’s 10% tariffs. These exemptions cover strategic sectors of the national economy, which represents a relief for exporters and a guarantee of competitive access to the U.S. market.

Crude oil, with an exported value of USD 4,591 million in 2024 -equivalent to 32% of total Colombian sales to the United States- is exempt from the tariff thanks to its inclusion in Annex II of strategic products, in the energy category. This decision represents a great relief for Colombia, given that crude oil is its main export product and a key source of public finances.

Precious metals are also exempt, which amounted to USD 1,551 million (10.8% of total exports). This category includes gold, a strategic asset due to its value as a safe haven in times of volatility. Colombian gold, which represents approximately 1.9% of world production, is protected because of its financial importance and its role in market stability.

Refined petroleum products, which generated revenues of USD 1,147 million (8%), are also excluded from the tariff levy. Their classification within the energy sector – a priority for U.S. industrial competitiveness – shields them from the effects of Trump’s tariffs.

On the other hand, some chemical and pharmaceutical products, such as vaccines, antibiotics and vitamins, are excluded as long as they are included in the headings contemplated in Annex II.

Products potentially most affected by the 10% tariff

In contrast, cut flowers, with exports of USD 1,868 million (13%), are not included in the categories protected by the tariff decrees. This sector, highly sensitive to international prices, could lose competitiveness vis-à-vis other producers, such as Ecuador, if Trump’s tariffs make its sales in the US market more expensive.

Coffee, another emblematic product of Colombia, with sales of USD 1,318 million (9%), does not appear among the excluded goods either. Although it is a traditional good and could count on some special treatment if it were classified within a protected subcategory (such as green unroasted coffee), there are no clear signs of this happening. Therefore, in spite of the 46% tariff imposed on Vietnam, it could still compete in terms of quantity, so the impact on the coffee market is not yet clear.

Also, a number of textile manufactures and garments – if they appear in other lines of trade – are at risk, as they are not exempt and tend to operate at reduced margins. These products could face significant trade barriers that would particularly affect small and medium-sized fashion exporters.

Finally, non-core processed plastics could be affected, unless they are pure polymers such as polyethylene or polypropylene, which are explicitly exempted due to their industrial importance. Other processed forms of plastic that are not classified in these privileged subcategories would face Trump’s tariffs, reducing their attractiveness to other suppliers.

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Increased dependence on low value-added products

Trump’s tariffs of 10% represent a significant threat to the Colombian economy, especially for the most vulnerable sectors. Although key products such as oil are exempt, others such as coffee, flowers and manufactures will face serious consequences. According to Cedetrabajo’s research coordinator, Miguel Ángel Rodrìguez, this measure deepens the reprimarization of the economy and weakens strategic industrial sectors, affecting workers, women and small businesses.

For the analyst, the most worrying aspect is the inaction of the Colombian government, which is facing the crisis without a trade minister, without a clear direction in industrial policy and without a strategy to mitigate the effects of this new global protectionist wave. The absence of leadership could turn Colombia into a repository of global surpluses and further aggravate its already fragile fiscal and productive situation. If urgent measures are not taken, the impact will be more severe than that of the pandemic.

Why are some goods excluded?

The main reason behind these exclusions is that many of the goods listed are part of Annex II strategic goods for the United States, which includes sectors such as energy, medicines and semiconductors. In addition, these products are considered critical to maintaining U.S. industrial competitiveness.

Another important criterion is value-added: non-U.S. content is not taxed if the product contains at least 20% U.S.-made value, subject to validation by Customs and Border Protection (CBP). In contrast, products included in Section 232, such as steel, aluminum and automobiles, continue to be subject to a 25% tariff, although Colombia is not included in that category for those specific goods.