The U.S. cancels Colombia tariff threat

Summary

Marketplace Morning Report – Episode: "The U.S. Cancels Colombia Tariff Threat"
Release Date: January 27, 2025
Host: Liana Byrne
Source: BBC World Service

---

Introduction

In this episode of the Marketplace Morning Report, host Liana Byrne delves into significant developments in international relations, financial markets, and environmental challenges. The episode provides a comprehensive overview of the U.S. decision to retract its tariff threats against Colombia, the implications of artificial intelligence advancements in China on global markets, and the pressing environmental issues facing Guatemala's water bodies.

---

U.S. Retracts Tariff Threats Against Colombia

Overview:
The United States announced the cancellation of its previously threatened tariffs and sanctions against Colombia following the South American nation's agreement to repatriate its deported citizens. This move marks a significant thaw in U.S.-Colombia relations after escalating tensions earlier in the week.

Key Points:

• Initial Threats:
  President Donald Trump had initially threatened a 25% tariff on Colombian imports, along with travel bans and visa sanctions targeting government officials. This was in response to Colombia's refusal to allow two U.S. military planes carrying deported migrants to land.
  Oliver Farrell, BBC Reporter, [00:59]:
  “President Trump took to social media to accuse President Petro of jeopardizing US national security.”

• Reversal of Decision:
  The White House later stated that Colombia had agreed to promptly accept the return of illegal migrants, leading to the withholding of the tariffs. However, visa sanctions will remain until the first batch of deportees is successfully repatriated.
  White House Statement, [00:59]:
  “Tariffs would be held in reserve, and visa sanctions would remain in place until the first planeload of deportees had been successfully returned.”

---

Impact on Colombian Citizens and Local Opinions

Personal Stories:

• Gloria Marcela Rubiano's Perspective:
  Interviewed in Bogotá, Gloria, a 45-year-old unemployed Colombian, expressed mixed feelings about the U.S. policy changes. While she acknowledges the negative impact on migrants seeking opportunities in the U.S., she also notes the strain foreign migrants place on local employment.
  Gloria Marcela Rubiano, [01:48]:
  “So it's bad news for migrants from Latin America and Colombia. On the other hand, I do have some sympathy for Trump because here in Colombia, we know what it's like with all the foreign migrants... They work for almost nothing.”

• Reluctance to Risk Illegal Migration:
  Despite unemployment, Gloria does not intend to migrate illegally without a visa, highlighting the personal risks involved.
  Gloria Marcela Rubiano, [02:25]:
  “I would go, but only with a visa. But to go by other means? No, I wouldn't do it. I wouldn't risk it. I have family here.”

---

Financial Market Reactions and AI Developments

Currency and Markets:

• Dollar Weakening:
  The U.S. dollar experienced a decline against major currencies as investor concerns over potential tariffs resurged. Last week marked the dollar's weakest position in over a year.

• Wall Street Expectations:
  Anticipation of numerous monetary policy decisions this week has added to market volatility. Additionally, Wall Street is poised for a downturn following significant advancements in artificial intelligence (AI) by Chinese startups.

AI Competition:

• Chinese AI Advancements:
  Chinese companies like DeepSeek, ByteDance, and Baidu have launched large language models that challenge existing leaders like OpenAI and Meta. These developments question the sustainability of the substantial investments made by Silicon Valley into AI technologies over the past year.
  Seranjana Tiwari, BBC, [03:13]:
  “It could derail the investment case for the entire AI supply chain if they're able to do it so cheaply, especially if some companies are able to scale so quickly.”

---

Environmental Crisis in Guatemala: Pollution of Lakes and Rivers

Pollution Overview:

• Widespread Contamination:
  An estimated 95% of Guatemala's lakes and rivers are polluted, severely impacting local businesses and the tourism industry. Lake Amatitlan, once a vibrant tourist spot, now suffers from excessive garbage and waste disposal issues.

Efforts to Clean Up:

• Lake Amatitlan Cleanup:
  Engineer Byron Catalan oversees the removal of substantial trash from the lake, including plastic bottles, shoes, and old clothes. The cleaning operations utilize boats and machinery to extract waste.
  Byron Catalan, [04:29]:
  “What we have here is all the rubbish that we cleared from the Lake Amatitran...”

• Financial Constraints:
  Dr. Emna Leticia Diaz Lara, executive director of the lake's cleaning unit, emphasized the financial challenges, stating the current budget falls short by over double the required amount.
  Dr. Emna Leticia Diaz Lara, [04:45]:
  “We have 4 million quetzals, which is around $500,000, which isn't enough. I will say that we need more than double what we currently have.”

Impact on Tourism:

• Economic Losses:
  Victor Orbina, general manager of the Santa Teresita hotel near Lake Amatitlan, highlighted the negative impact on tourism, estimating potential losses of three to four million dollars annually if pollution persists.
  Victor Orbina, [05:32]:
  “If the lake is the way it is right now... maybe we're losing in a year, three to four million dollars.”

Community Initiatives:

• Lake Aticlan Conservation:
  In contrast, Lake Aticlan remains a top tourist attraction thanks to community-led cleanup efforts. Indigenous women, including Telsa Juarez and Nancy Gonzalez, actively participate in monthly cleanups, advocating for corporate responsibility in pollution.
  Nancy Gonzalez, [06:07]:
  “There are lots of fizzy drink bottles, and we want big companies to take responsibility for what they make and to clean it up.”

Regulatory Challenges:

• Lack of Environmental Laws:
  The absence of regulations governing water usage has hindered significant progress in pollution control, with local activists pushing for legislative change.
  Nancy Gonzalez, [06:27]:
  “There isn't any law regulating the use of water, and for many years, there was no political appetite to make one.”

---

Conclusion

The episode of Marketplace Morning Report provides an insightful examination of U.S.-Colombia relations, the global financial landscape influenced by AI advancements, and the environmental struggles in Guatemala. Through interviews and expert analysis, listeners gain a comprehensive understanding of these complex issues and their broader implications.

---

Notable Quotes

• Gloria Marcela Rubiano:
  “...it's bad news for migrants from Latin America and Colombia...”

• Byron Catalan:
  “What we have here is all the rubbish that we cleared from the Lake Amatitran.”

• Seranjana Tiwari:
  “It could derail the investment case for the entire AI supply chain if they're able to do it so cheaply...”

• Victor Orbina:
  “If the lake is the way it is right now... maybe we're losing in a year, three to four million dollars.”

---

Closing Remarks

Liana Byrne wraps up the episode by summarizing the key points and thanking listeners for tuning in, reminding them of the breadth of coverage provided by the Marketplace Morning Report.

---

This summary is intended for informational purposes and encapsulates the key discussions and insights presented in the episode for those who have not had the opportunity to listen.

Transcript

[Unknown Speaker 1]

VantageScore is the fastest growing and most predictive credit score used by 8 out of the 10 largest banks and over 34 banks, fintechs and other companies nationwide. VantageScore is mandated for use for mortgages funded by Fannie Mae and Freddie Mac. Vantage Score drives financial inclusions by scoring approximately 33 million more consumers than competitive credit scores. VantageScore Good for credit crit credit for good learn more advantagescore.com the US hits.

[Liana Byrne]

Pause on Colombia sanctions live from the UK this is the Marketplace Morning report from the BBC World Service. I'm Liana Byrne. Good morning. The US Says it's not going ahead with tariffs and other sanctions against Colombia after the country agreed to take back its citizens who were deported from the US President Donald Trump had threatened the measures on Sunday after Colombia turned away two military planes carrying deported migrants. The BBC's Oliver Farrell Armand reports.

[Oliver Farrell]

After Colombia prevented the planes from landing, President Trump took to social media to accuse President petro of jeopardizing US national security. He said he had authorized tariffs of 25% on imports from Colombia, as well as travel bans and visa sanctions on government officials. But a few hours later, the White House said Colombia's government had agreed to accept without delay the return of illegal migrants, including on military aircraft. Tariffs would be held in reserve, the statement said, and visa sanctions would remain in place until the first planeload of deportees had been successfully returned.

[Liana Byrne]

Oliver Farman there now. The BBC's Gideon Long is in Bogota. On Saturday, he spoke to people about President Trump's approach to migration. Gloria Marcelo Rubiano is 45 and unemployed.

[Gloria Marcela Rubiano]

Obviously all the migrants are going to be deported and there won't be opportunities to go to the United States. The visa is going to be very difficult to get. So it's bad news for migrants from Latin America and Colombia. On the other hand, I do have some sympathy for Trump because here in Colombia, we know what it's like with all the foreign migrants we've had coming here, mostly Venezuelans, they've taken work opportunities away from us because they work for almost nothing. So businesses prefer to hire foreigners. So it's good for businesses. But for us, for unemployed people, for ordinary people, it's bad news.

[Oliver Farrell]

You're unemployed yourself. Would you consider trying to go to the United States?

[Gloria Marcela Rubiano]

I would go, but only with a visa. But to go by other means? No, I wouldn't do it. I wouldn't risk it. I have family here.

[Liana Byrne]

So now, Gloria Marcella Rubiano there. Now let's do the numbers. The dollar was down against the end this morning because investors are starting to get concerned again about U.S. tariffs. Last week was the dollar's weakest in more than a year. Also get ready for lots of monetary policy decisions this week. And speaking of markets, Wall street is expected to open a lot lower this morning, all because a Chinese artificial intelligence startup, Deepseek, released its largest language model to rival OpenAI and Meta. And these advances raise questions over whether the billions of dollars that have been poured into AI in Silicon Valley over the past year has been overdone. Here's the BBC's Seranjana Tiwari.

[Seranjana Tiwari]

Last week, a few Chinese companies released models. Most famous is Deep Seek, but it's not the only one. ByteDance also got a model and has moved very quickly to release it. Another one is Baidu, best known for its search engine and Ernie Chatbot. But it's also got a generative AI integrated platform called Wenku, which quickly creates PowerPoints and other documents. And that's actually reached 40 million paying users with revenue up 60% from a year ago as of the end of last year. And it could derail the investment case for the entire AI supply chain if they're able to do it so cheaply, especially if some companies are able to scale so quickly.

[Liana Byrne]

Sir. Janet, why are you there? Okay, let's turn to Guatemala, where It's estimated that 95% of all lakes and rivers are polluted, damaging local businesses and the tourism industry. The BBC's Jane Chambers looks at the cost of cleaning up one polluted lake and how to keep the waters of a top tourist attraction clean.

[Jane Chambers]

Lake Amatitlan is surrounded by lush green hills and volcanoes. It used to be a popular tourist attraction, but now the garbage is putting visitors off.

[Byron Catalan]

What we have here is all the rubbish that we cleared from the Lake Amatitran. We have a lot of things like plastic bottles, shoes and old clothes. We have boats on the lake and use machinery to get the trash out.

[Jane Chambers]

That's engineer Byron Catalan, who's in charge of the lake's cleaning unit. Every year, Byron and his team collect so much trash, it would fill around two Olympic swimming pools. Byron takes me to see Dr. Emna Leticia Diaz Lara, the executive director of the government run cleaning unit in Lake Amatitlan. She says that decontaminating the lake doesn't come cheap. We have 4 million quetzals, which is around $500,000, which isn't enough. I will say that we need more than double what we currently have. The scale of the pollution is affecting local businesses. Victor Orbina is the general manager of the Santa Teresita hotel near Lake Amatitlan.

[Victor Orbina]

Tourism isn't the same. If the lake is the way it is right now, I mean, business opportunity, maybe we're losing in a year, three to four million dollars.

[Jane Chambers]

I've traveled to a town called San Pedro de la Lagoon to see a different lake called Lake Aticlan, which is one of the top tourist attractions in Guatemala. Telsa Juarez lives near the lake. She's part of a group of indigenous women who come on the last Saturday of each month to clean up the lake.

[Byron Catalan]

There are lots of fizzy drink bottles, and we want big companies to take responsibility for what they make and to clean it up.

[Jane Chambers]

Elsa's friend Nancy Gonzalez, who is also part of the cleanup process, says that progress has been slow in taking on the big industries who pollute in Guatemala.

[Liana Byrne]

There isn't any law regulating the use of water, and for many years, there was no political appetite to make one.

[Jane Chambers]

The stakes are high for the communities that border these waters. So for now, Nancy and Elsa will keep on pushing for change. I'm the BBC's Jane Chambers for Marketplace.

[Liana Byrne]

And that's it from the Marketplace Morning Report. From the BBC World Service, I'm Lianna Byrne. Have a great day, and as ever, thanks so much for listening.

[Rachel]

Hi, this is Rachel from Richardson, Texas. I love the unique perspective that Marketplace offers. As a psych major, I love listening to stories and interviews that include behavioral economics and consumer psychology, which can be hard to find in other reporting about the economy. Economy. I also enjoy hearing the experiences of small business owners around the country. Join me in supporting Marketplace with a gift today. Go to marketplace.org donate.