Government hopes to reverse a 5% increase in U.S. trade tariff announced Thursday

Ecuador officials say they are “hopeful” a favorable trade agreement with the U.S. can be worked out in the next week. Despite Thursday’s announcement that the Trump administration is imposing a 15% tariff on the country’s exports, Trade Minister Luis Alberto Jaramillo says talks continue to lower the rate.

Ecuador trade officials are continuing talks with the U.S. to reduce a recently added 5% export tariff.

“Our expectations are that we will be able to reverse the increase imposed last week,” Jaramillo says. “This was a last-minute change but we have several days before it becomes effective.”

The Trade Ministry had expected to pay an additional 10% export tariff beginning August 1, as previously announced, but on Thursday President Donald Trump decided to increase the tariff on countries that have large trade surpluses with U.S. According to Jaramillo, the increase was aimed at about 40 countries which met Trump’s trade surplus criteria. “We happen to be among those countries – we were not picked arbitrarily,” Jaramillo said.

The new tariff rate is scheduled to go into effect August 7.

If the additional 5% tariff charge is not reversed, Ecuador will be at a major trade disadvantage with neighboring Colombia and Peru, particularly for such exports as bananas, seafood, cocoa and flowers. “This could be disastrous for marginal producers if it stands,” says Xavier Rosero, president of Fedexpor. “Five percent is the margin of competitiveness for some countries. Even for companies with strong balance sheets, it would become more difficult to compete.”

Richard Salazar, director of the Ecuador Banana Exporters Association, said the increase tariff represents an “exercise of bad faith” on the part of the U.S. “We have been in talks with them for months and even though we had not reached agreements on most issues, we were prepared to work with the 10% rate. All we asked for was an even playing field and, at the last minute they put us at a disadvantage.”

Rosero says he is optimistic a deal will be reached, if not within the next week, soon after. “One thing we’ve learned about him [Trump] is that he is erratic and changeable and nothing he says in the final word. In general, we have a very good relationship with the Americans, and I believe this issue will be resolved.”

According to the Trade Ministry, Ecuador exported $2.2 billion to the U.S. in the first five months of 2025 while it imported $1.23 billion in goods from the U.S.

Other Latin American countries assessed the additional 5% tariff include Costa Rica, Bolivia and Venezuela.