
Daily Coffee Report 6/12/26
Daily coffee report

- Coffee
By: Diana Delgado, Contractor

Ecuador Reduces Tariffs From 100% To 75% On Colombian Products Including Coffee
Bogota (Coffee Network) - Ecuador has decided to reduce tariffs to 75% from 100% to Colombian products, including coffee, a move that could be viewed as eased tensions between the two countries.
The measure, which takes immediate effect, is presented as a step toward “advancing bilateral cooperation mechanisms on security” and strengthening development in the border region between the two countries, the Ecuadorean government said.
This tariff adjustment comes just three days after the 100% maximum duty took effect, which had been formalized by Ecuador’s National Customs Service (Senae) through a resolution issued on April 9. According to official records, the trade dispute has escalated steadily since the start of the year, when a 30% tariff was initially imposed on the grounds that Colombia was not taking sufficient action against drug trafficking and illegal mining.
Three months ago, Ecuador President Daniel Noboa levied on imports from Colombia. Noboa imposed initially a 30% tariffs in a bid to push the Gustavo Petro administration to make a commitment to border security to counter rising drug trafficking and related violence. Then, he raised the rate to 50% in March.
The director of the Ecuadorean coffee exporters association had told Coffee Network that coffee exporters could not export not even one bean with tariffs at 100%.
Presidential candidate Paloma Valencia, said on her social media that this decision by the Ecuadorian government was the result of her efforts. Colombia will hold presidential elections on May 31 during the first round.
“Today I spoke by phone with President Daniel Noboa of the Republic of Ecuador. I expressed my commitment to cooperate in restoring security on both sides of the border, should I be elected president of Colombia. President Noboa decided to lower tariffs from 100% to 75% as a gesture of goodwill to work with the next government,” the candidate said.
Ecuador remains a strategic partner for Colombia, the exporters association Analdex said. In 2025, Ecuador was the sixth largest buyer of Colombian exports, totaling USD $1,846.7 million FOB, compared to USD $1,921.7 million FOB in 2024, representing a contraction of -3.9% (an absolute decrease of approximately USD $74.4 million FOB).
This adjustment is largely explained by the decrease in electricity imports, which fell from USD $318.1 million FOB to USD $133.8 million FOB, a change of -57.9%, demonstrating that the energy component can generate high volatility in the overall trade combination.
Ecuador purchased $27.95 million in coffee products from Colombia last year, up from $19.01 in 2024, Analdex said. The main coffee export product is coffee concentrates, extracts and coffee essences, with total shipments worth $14.7 million, up 28% on the year Analdex added.
In protest, Colombian President Gustavo Petro ordered the immediate recall of Ambassador María Antonia Velasco from Quito for consultations after his Ecuadorian counterpart, Daniel Noboa, announced an increase of up to 100% in tariffs on imports from Colombia. "I made these commitments against drug trafficking from the very beginning of my life fighting for social justice in Colombia. I wasn't born into the families of wealthy banana growers or bankers. I was born into the working class, who are neither drug traffickers nor money launderers. They live by their labor and their sacrifice."
Trade surplus
The Ecuadorian government announced on Friday, April 3, that it had recorded a trade surplus of $62.9 million with Colombia "for the first time in more than 25 years," following more than two months of a trade war that has led to escalating tariffs of up to 50 percent and, since May 1, to 100 percent.
"Between February 1 and March 31, 2026, the dynamics of bilateral trade with Colombia underwent an unprecedented change," the Ministry of Production, Foreign Trade, Investment, and Fisheries highlighted in a statement.
Ecuadorian exports to the neighboring country grew by 32 percent compared to the same period of the previous year, while imports from Colombia decreased by 56.7 percent.
The dispute escalated
The escalation began on January 21, when Ecuadorian President Daniel Noboa announced a 30% tariff on Colombian imports, arguing that Colombia was not doing enough regarding border security.
The following day, the Colombian government responded with an equivalent measure on Ecuadorian products and announced the suspension of electricity sales to its neighbor.
But this clash didn't stop at tariffs. Ecuador increased the tariff for transporting Colombian crude oil by more than 900%.
By Diana Delgado
Sources: Colombian and Ecuadorian governments
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June 12 – The ebb and flow of whether we have a deal with Iran or not continues, while Wall Street demonstrates that it wants to believe the positive at a time when earnings reports and much of the economic data point upward, despite some risks. Stock futures pushed higher on that optimism over a possible end to the war with Iran, along with enthusiasm over today’s highly anticipated SpaceX IPO. The VIX slipped lower to trade near 19, while the dollar index traded near 99.8. Yields on 10-year Treasuries are trading near 4.48%, while yields on 2-year Treasuries are trading near 4.08%. Money generally flowed out of both the energy and food-based commodities overnight on Iran peace prospects. WTI crude oil prices fell to an eight-week low overnight and are now trading near $85 per barrel, while Brent trades near $88 per barrel. The grain and oilseed markets were mostly lower as well.


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