U.S. Tariff Threat Shakes Colombian Peso on April 2

Washington announced plans for a new tariff strategy on April 2, 2025, sending shockwaves through global markets. The Colombian Peso weakened sharply, closing at 4,162.2 COP per USD after a volatile session.

This drop exposed Colombia’s economic fragility amid rising trade tensions. A 5-minute TradingView chart captured the USD/COP rate spiking to 4,164.0 during the day.

The pair then fell to 4,140.0, showing trader uncertainty. By 07:20 UTC on April 3, the rate settled at 4,147.5, rising slightly to 4,152.82 by 08:26 AM WEST. President Trump’s tariff plan targeted nations like Canada, Mexico, and China, aiming to match duties on U.S. goods.

This news drove investors to the U.S. Dollar, a safe-haven asset, as fears of a trade war grew. Colombia, dependent on oil exports, faced pressure from tariff-related supply concerns.

The central bank had kept its interest rate at 9.5% on January 31, despite calls for a cut to boost growth. This decision left the Peso exposed to external shocks. The currency, already down from a 5.4% gain against the USD in 2023, struggled further.

U.S. Tariff Threat Shakes Colombian Peso on April 2. (Photo Internet reproduction)

Global markets reacted strongly, with the Mexican Peso falling 0.4% to 20.46 per USD on April 2. S&P 500 E-minis dropped 3.5% as Trump spoke, while gold and Treasuries gained. These shifts underscored the broader risk-off sentiment impacting emerging markets like Colombia.

The real story lies in Colombia’s vulnerability to U.S. policy shifts. Tariffs threaten to disrupt oil exports, a key revenue source, while global uncertainty weakens the Peso. The central bank’s cautious stance offers little relief, leaving businesses and investors on edge.

As trade tensions escalate, Colombia faces a tough road ahead, with markets watching Washington’s next move closely.