Investors are preparing for the assets of Colombia after tension with Trump

The value of Colombian assets is expected to collapse, after US President Donald Trump said he would implement a series of customs definitions and sanctions against the country in South America. Trump’s announcement of the definitions of 25% of emergency goals on all Colombian goods to the United States surprised the traders, as most of the focus has so far focused on the drawings placed on Mexico, Canada and China. This step is likely to lead to a recession that echoes in the bond markets, currencies and local stocks when it opens on Monday. Credical Capital Colombia, adding that the bizo will weaken the dollar on Monday morning, adding that the economy can move to the recession in an ‘extremist scenario’. But he warned that this step is “completely unexpected and that the results cannot be predicted,” and add: “We must know to what extent Trump is going, and how the Colombia government will respond, in the hope that diplomacy will be used to prevent negative consequences.” The start of the crisis comes to Trump’s move after Colombian President Gustavo Petro told X that he would reject American flights with migrants unless they were treated with dignity and not as criminals. After that, Trump ordered a 25% customs tariff, which will be increased to 50% within one week. Petro later said in a separate publication on social media that he would impose revenge definitions with the same percentage on goods from the United States. Over the past week, emerging currencies, which were hit at the end of 2024, rose amid concerns about Trump’s policies, after the fear of commercial wars was reduced, due to the proposal of US definitions weaker than expected, and the absence of new fees on Chinese imports. Latin Latin currencies, with a high return, including the Colombian Bizo, contributed to accelerating the profits. Traders say the sudden advertisement would limit more profits. The Mexican and South African Bizo, two signs of risk appetite, spread early in the Asian session. The expectation of the decline in the Colombian Bizo considered Gilberto Hernandez Gomez, the local market of Latin America in “Banco Bilbao Vizcaya Argentaria”, that the Bizo could weaken more than 4,400 pesos for the dollar on Monday due to this news. This is about 5% less than the value traded on Friday. He added: “There was an expectation for most investors that Colombia could be a bit far from the dangers of customs definitions, and they were ready to enter the recent buying centers,” to say, “Now the risk allowance will increase.” According to the tax authorities in Colombia, the list of Colombian exports to the United States is top products such as oil, gold, coffee and flowers. The country is the fourth largest exporter of foreign oil for the United States, better than Saudi Arabia and Brazil, according to the Energy Information Division. About a third of Colombian exports go to the United States. “We expect losses in all the assets denominated in the bizo,” says Juan David Palin, an analyst at the local brokerage business, “in addition, a decline in the country’s risk allowance and a decrease in Ecopterol’s stock is among other.”