Imposing tariffs on Mexico makes no sense whatsoever and sets a very bad precedent, a former Ecuadorian trade minister said. On Tuesday, Mexican President Claudia Sheinbaum downplayed the impact of the 27% tariffs that Ecuadorian President Daniel Noboa imposed on Mexican products.

During her press conference, she stated that imports from Ecuador account for only 0.4% of Mexico’s total imports. Due to Ecuador’s minimal weight in Mexico’s trade balance, Sheinbaum did not announce any retaliatory measures and joked, saying that “Mexican shrimp are tastier than Ecuadorian ones.”

On Monday, the far-right President Noboa announced that he would impose a 27% tariff on all Mexican products. He justified his decision by stating that the current non-oil trade between the two countries constitutes an “abuse” against Ecuador, an Andean country that has a trade deficit with Mexico.

Mexico severed diplomatic relations with Ecuador in April 2024 after the Noboa administration ordered its police forces to storm the Mexican Embassy in Quito to arrest former Vice President Jorge Glas. The text reads, “Imitating Trump, Ecuadorian President Daniel Noboa announced the imposition of 27% tariffs on all products from Mexico. Noboa’s clumsy bravado has provoked ridicule because Mexico’s dealings with this country are insignificant.”

In 2024, Mexican exports to Ecuador totaled US$446 million, a figure that represents just 0.07% of Mexico’s total exports worldwide. During the same period, Mexico achieved a trade surplus of US$108 million in its transactions with Ecuador. In Ecuador, Noboa’s decision sparked strong criticism from productive sectors. Former Trade Minister Julio Jose Prado stated that imposing 27% tariffs on Mexico “makes no sense whatsoever and sets a very bad precedent” because it harms Ecuador far more than it does Mexico.

He also pointed out that Ecuador’s unilateral decision will lead to price increases in essential goods imported from Mexico, such as medicines, vehicles, household appliances, computers, pipes, and raw materials for the food and manufacturing industries. Prado emphasized that Ecuador could even face a lawsuit at the World Trade Organization (WTO) because “we have no valid reason” to impose tariffs on Mexico, given that there is no balance of payments crisis, nor is there an excessive appreciation of the dollar against the peso.

“Trump-style? While Trump, with a similar measure, managed to bring Mexico to the negotiating table to discuss migration issues, Ecuador neither has the power nor the capacity to force Mexico to negotiate anything. There is no conflict to resolve. We are creating an unnecessary problem with consequences we do not yet understand,” the former minister said.