Honduras and Nicaragua had tense relations throughout 2000 and early 2001 due to a boundary dispute off the Atlantic coast. Nicaragua imposed a 35% tariff against Honduras due to the dispute.
In June 2009, Honduran President Manuel Zelaya was ousted in a coup d'état and taken to neighboring Costa Rica. Like several other Latin American nations, Mexico temporarily severed diplomatic relations with Honduras. In July 2010, full diplomatic relations were once again re-established.
The United States maintains a small presence at a Honduran military base; the two countries conduct joint peacekeeping, counter-narcotics, humanitarian, disaster relief, and civic action exercises. U.S. troops conduct and provide logistics support for a variety of bilateral and multilateral exercises—medical, engineering, peacekeeping, counter-narcotics, and disaster relief. The United States is Honduras' chief trading partner.
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