54% of Ecuador's non-oil exports to avoid Trump tariff, says trade group

Ecuador's non-oil exports to the United States will largely be spared from a new 10% tariff announced by Washington, according to the Ecuadorian Exporters Federation (Fedexpor). The federation estimates that 54% of these exports will be exempt from the new charge.

This exemption is attributed to general exclusions approved by the U.S. and a specific list of 151 tariff codes designated for Ecuador. The remaining 46% of non-oil exports will still be subject to the 10% tariff. However, Ecuador benefits from a lower rate compared to several regional competitors, including Peru, Colombia, Chile, Costa Rica, and the Dominican Republic, who face a 12.5% tariff.

The measure, implemented by the Office of the U.S. Trade Representative (USTR) under Section 301 of the Trade Act of 1974, replaces a temporary 10% global tariff. Fedexpor clarified that for products not exempted, the tariff remains 10%, but the legal basis for the measure has changed.

“

The remaining 46% will continue to be subject to a 10% tariff, although Ecuador is in the lower bracket of the new scheme, compared to the 12.5% assigned to several regional competitors, including Peru, Colombia, Chile, Costa Rica, and the Dominican Republic.

Products included in the general exclusions are fresh bananas, plantains, cocoa beans, and instant coffee. Additionally, 151 specific tariff lines for Ecuador, such as roses, other flowers, palm oil, plywood, tropical wood boards, and cork, are also exempt from the 10% tariff. These products will continue to pay ordinary tariffs, as Ecuador does not have a free trade agreement with the U.S.

Xavier Rosero, president of Fedexpor, believes the assigned tariff rate gives Ecuador a relative advantage over competitors. However, he cautioned that U.S. trade policy can be unpredictable. "We need to increase our country's presence in Washington to continue strengthening political ties that allow us to improve access for our exportable supply and reduce the competitive disadvantage compared to our trading partners," Rosero stated.

“

We need to increase our country's presence in Washington to continue strengthening political ties that allow us to improve access for our exportable supply and reduce the competitive disadvantage compared to our trading partners.