BOGOTA (Reuters) – On Monday, Colombia announced it has recalled its ambassador from Washington in response to U.S. President Donald Trump’s remarks about increasing tariffs on the country and halting all payments to it. This move escalates tensions stemming from U.S. military actions against vessels suspected of drug trafficking.

President Trump further inflamed the situation by labeling Colombia’s left-leaning President Gustavo Petro as an “illegal drug leader” on Sunday, a comment Petro’s administration swiftly condemned as offensive.

In the wake of these developments, Colombia’s currency took a hit, dropping 1.4% to 3,889 pesos against the U.S. dollar in early Monday trading.