Penguins, Trump Tariffs and The Dollar

Not even penguins were spared from Donald Trump's tariffs, with the remote Heard Islands in Oceania, home only to penguins, being included in the US tariff list. The move aimed to prevent the islands from becoming a free trade zone and a hub for exports evading tariffs. Meanwhile, Colombia initially faced uncertainty due to Trump's tariff threats but is expected to benefit significantly from its proximity to the US and relatively low tariffs compared to other nations, such as Vietnam, which faces a 56% tariff rate. This could boost Colombia's competitiveness starting in 2026.

Several factors contribute to Colombia's economic resilience:

- Prudent management by the Central Bank*: Effective handling of foreign currency reserves and gold sales.

- Tourism sector growth*: Increased tourism activity supports the local economy.

- High oil prices*: Colombia benefits from the current high oil prices.

- Record remittances*: Historically high levels of remittances from abroad.

These factors have strengthened the Colombian peso against the US dollar, with an expected exchange rate of around 4,300 pesos per dollar in 2025