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Trump Cuts Colombia Aid And Announces New Tariffs

A diplomatic crisis erupts as President Trump halts U.S. assistance to Colombia and threatens major tariffs, deepening tensions over drug policy and trade.

6 min read

On Sunday, October 19, 2025, the already tense relationship between the United States and Colombia took a dramatic turn. President Donald Trump, speaking from Palm Beach and later aboard Air Force One, announced that the U.S. would immediately cut all financial assistance to Colombia and impose new tariffs on Colombian exports. The move, which Trump said would be detailed further on Monday, sent shockwaves through both diplomatic circles and international markets, as the two countries have long been close allies in the fight against drugs and in economic cooperation.

Trump’s decision comes amid a public and increasingly personal spat with Colombian President Gustavo Petro. On his Truth Social platform, Trump accused Petro of being “an illegal drug leader” and “low rated and very unpopular,” alleging that the Colombian president had done “nothing to stop” drug production. The rhetoric didn’t stop there. Trump warned that Petro “better close up” drug operations in Colombia, or else “the United States will close them up for him and it won’t be done nicely.” Later, he told reporters, “Colombia has no fight against drugs. They are a drug manufacturing machine with a lunatic president.” According to Axios, Trump further accused Petro of “strongly encouraging the massive production of drugs,” and dismissed previous U.S. aid as “nothing more than a long term rip off of America.”

For Colombia, the prospect of losing U.S. aid and facing new tariffs is more than a diplomatic slap on the wrist—it’s a looming economic crisis. The United States is Colombia’s main trading partner, accounting for 27% of its exports and 26% of its imports in 2023, as reported by El País. In the U.S., trade with Colombia is far less significant, representing just 0.55% of imports and 0.89% of exports. But for Colombia, the loss of U.S. market access and financial support could have dramatic consequences for employment, business stability, and government programs.

Trump’s move is not entirely without precedent. In September, the administration accused Colombia of failing to cooperate in the war on drugs, even as Washington issued a waiver that temporarily spared the country from sanctions that would have triggered aid cuts. Still, the writing was on the wall. According to U.S. figures, Colombia received roughly $230 million in aid for the budget year ending September 30, 2025—a steep drop from the more than $700 million it received in previous years. On Sunday, Trump made it official: “AS OF TODAY, THESE PAYMENTS, OR ANY OTHER FORM OF PAYMENT, OR SUBSIDIES, WILL NO LONGER BE MADE TO COLOMBIA,” he wrote on Truth Social.

Senator Lindsey Graham, a close Trump ally, confirmed the president’s intentions on Sunday, stating he had spoken with Trump and that the announcement of new tariffs on Colombian imports would come Monday. This confirmation, reported by El País, heightened the sense of urgency among Colombian officials and business leaders. Colombia, one of the few Latin American countries still closely tied to the U.S. economy, now finds itself particularly vulnerable. The threatened tariffs are just the latest in a series of escalating disputes between the two countries.

President Petro, who is no stranger to social media battles himself, quickly fired back. “Trying to promote peace in Colombia is not being a drug trafficker,” he posted, describing himself as “the main enemy” of drugs in Colombia. In another post, he wrote, “Mr. Trump, Colombia has never been rude to the USA; on the contrary, it has greatly admired its culture. But you are rude and ignorant toward Colombia.” Petro also accused the U.S. of killing a “lifelong fisherman” in a September military strike, part of a series of attacks on vessels that the Trump administration claims are necessary to stem the flow of drugs. The Pentagon did not respond to requests for comment, according to Axios.

Colombia’s Foreign Ministry was quick to respond to Trump’s threats, calling them a “direct threat to national sovereignty by proposing an illegal intervention in Colombian territory.” Defense Minister Pedro Sánchez emphasized that Colombia “has used all its capability and also lost men and women fighting drug trafficking.” The Colombian government’s position is that it has been a steadfast ally in the U.S.-led war on drugs, and that Trump’s accusations are both unfair and dangerous.

The roots of the U.S.-Colombia partnership run deep. Since 2000, the United States has financed the so-called Plan Colombia, a massive effort to modernize Colombia’s armed forces and intelligence capabilities, expand troop numbers, and promote human rights. This support continued through the presidencies of Álvaro Uribe and Juan Manuel Santos, the latter of whom negotiated a historic peace agreement with the FARC guerrillas in 2016. Despite these successes, drug trafficking remains a stubborn problem, accounting for an estimated 4.2% of Colombia’s GDP, according to El País.

Trump’s decision to suspend all aid and hit Colombia with tariffs comes at a particularly volatile moment. Colombia’s economy is growing slowly, with improvements in employment but setbacks in public finances. The country is also preparing for the verdict in a high-profile case against former President Álvaro Uribe, a staunch opponent of Petro, and gearing up for the 2026 national elections. The loss of U.S. support, which once accounted for 26% of all aid to South America, represents a major blow—especially as Colombia has also faced cuts in European cooperation and shifting international priorities.

Adding to the tension, Colombia joined China’s Belt and Road Initiative in April 2025, signaling a shift away from its traditional alignment with the United States. The U.S. State Department has already indicated it would oppose funding for China-led projects in Colombia, such as Bogotá’s subway system. Meanwhile, U.S. military strikes in the Caribbean—ostensibly targeting “narco-terrorists”—have drawn criticism both at home and abroad. Some members of Congress, including Republican Senator Rand Paul and Democratic Senator Mark Kelly, have raised legal and constitutional concerns about the strikes, questioning the administration’s authority and the lack of transparency regarding the identities of those targeted.

Colombia’s business community is also sounding alarms. Bruce Mac Master, president of the business federation ANDI, wrote directly to Senator Graham on X, “Despite the significant differences between the presidents of the two countries, Colombia has made significant efforts for many years to combat drug trafficking. The idea of striking the country economically doesn’t seem strategically correct. If the flow of international trade between the two countries is reduced, the only significant effect will be a significant impact on the real economy and, therefore, also on the working class and employment in our country.” He urged both sides to “activate diplomatic mechanisms and stabilize the relationship between two countries that have been allies for more than 200 years and that face a large number of challenges.”

As the situation continues to unfold, Colombia is bracing for what could be a severe blow to its economy and its international standing. The coming days will reveal whether the Trump administration follows through on its threats, and whether both nations can find a diplomatic path forward amid rising tensions and shifting alliances.

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