US-Colombia Trade Deal to Suspend 12.5% Tariff in December
Exporters of goods like apparel and flowers should prepare for potential cost relief as trade negotiations head toward a year-end signing.
Updated on Oct. 22, 2026 in International Trade
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Colombia aims to finalize a trade agreement with the United States by December 2026 to potentially lift a 12.5% duty currently applied to various exports. This shift would impact businesses moving goods such as fresh flowers, apparel, and plastic items, which are currently subject to the tariff.
Why it matters
The tariff was implemented on July 24, 2026, due to U.S. concerns over forced-labour import standards, prompting Colombia to issue Decree 1444 on September 28, 2026. Resolving this compliance gap is critical for exporters looking to restore cost competitiveness in the U.S. market.
The 12.5% duty currently affects an estimated 20.8% to 30% of Colombian exports, which totaled US$50.2 billion in 2025. A new deal would cover 90% to 93% of exports, though the exact timeframe for implementation remains subject to formal U.S. notice.
The players
Colombia Commerce Ministry
The national authority managing trade negotiations and international export policy.
U.S. Trade Representative
The agency responsible for developing and coordinating U.S. international trade policy.
Ambassador Araújo
The diplomat leading the Colombian trade dialogue in Washington.
The details
Negotiators are currently reviewing the trade deal text to align Colombian import regulations with U.S. standards, specifically addressing forced-labour prohibitions. The current 12.5% tariff applies to specific categories including fresh flowers, apparel, plastic goods, and processed foods, while staples like coffee, oil, and medicines remain excluded. Once signed, the agreement requires a formal notice from the U.S. to trigger the removal of these duty costs.
Timeline
July 24, 2026: The U.S. 12.5% tariff on Colombian goods took effect.
September 28, 2026: Colombia issued Decree 1444 to ban forced-labour imports.
December 2026: Target date for the signing of the U.S.-Colombia trade agreement.
December 11, 2026: Colombia plans to sign a separate trade agreement with El Salvador.
Market Landscape
This move follows the enactment of Decree 1444, which serves as the regulatory foundation for normalizing trade relations with the U.S. It aligns with broader regional activity as Colombia simultaneously prepares to sign an agreement with El Salvador on December 11, 2026.
Exporters should prepare for the potential removal of the 12.5% duty, which would immediately shift margin structures for apparel, plastic goods, and fresh flowers. Operators should track the formal U.S. notice following the December signing to determine exactly when the new rate takes effect.
The takeaway
The anticipated trade deal represents a pivotal shift for exporters currently managing a 12.5% cost disadvantage in the U.S. market. Businesses should monitor official U.S. government notices in late December for the exact effective date of tariff removal to update their pricing strategies.
What happens next
Colombia is expected to finalize the trade deal text in the coming weeks ahead of the scheduled December 2026 signing.
Further reading
For broader context on current trade barriers, see International Trade.
Source note: This article includes information reported by The Rio Times.
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