BOGOTA, Colombia

Relations between Ecuador and Colombia deteriorated into a full-scale trade war Tuesday following a dispute over border security that has expanded into a significant disruption of regional energy and trade.

Ecuadorian President Daniel Noboa explicitly linked his country’s security crisis to criminal groups operating from Colombian territory. Noboa said in a statement on US social media company X that evidence confirms drug trafficking has become a "regional phenomenon" fueled by neighboring countries.

“For Ecuador, this has been a tireless struggle. Today, we have leaders like alias Pipo, Fénix, and Viche—all of Colombian identity—behind bars,” wrote Noboa. He specifically pointed to the gang leader Fito, who was recently extradited to the US, claiming he used Colombian territory as a base to control criminal networks in Ecuador.

Noboa warned that criminal groups attempting to replicate business models used in Colombia "were wrong about Ecuador."

The diplomatic impasse escalated into an "unusual trade war" last Wednesday when Noboa announced a 30% "security tax" on all Colombian imports, citing a lack of cooperation in securing a shared border. Colombia immediately retaliated by imposing a matching 30% tariff on 20 key Ecuadorian products and suspending all electricity sales with its neighbor -- a critical blow to Ecuador, which relies on Colombian power for 10% of its consumption.

In a further act of "reciprocity" on Jan. 27, Ecuador hiked the tariff for transporting Colombian crude oil through its state-owned SOTE pipeline by 900%, raising the fee from $3 to $30 per barrel.

Colombia’s Minister of Mines and Energy, Edwin Palma, accused the Noboa administration of "responding with aggression" in attempts at diplomatic resolution. Palma noted on social media that talks were nearly underway when Ecuador abruptly canceled in favor of further escalation.

Despite the friction, a potential high-level meeting between the two governments is tentatively scheduled for later this week. The outcome will determine if the neighbors can de-escalate or if the region faces a prolonged period of economic instability and energy shortages.​​​​​​​

Since 2024, Ecuador has remained under a state of “internal armed conflict,” a designation Noboa uses to treat criminal gangs as "terrorists."