DIPLOMATIC CRISIS WILL INCREASE DOLLAR

IN COLOMBIA

The tariffs from President Trump are expected to lead to a sharp devaluation of the Colombian peso back to 4.400 pesos in the next few days, making imports more expensive and potentially triggering higher inflation.

This, in turn, will cause the dollar to jump in value against the peso. In fact, the Colombian peso has already been the most devalued emerging market currency over the past month, with a devaluation of over 5%

The impact of the tariffs will be felt across various sectors of the Colombian economy, including manufacturing, agriculture, and services. The Colombian government will need to take swift action to mitigate the effects of the tariffs and prevent a sharp decline in economic growth.