US 12.5% tariff: the new pressure on Dominican exports

A new trade front opened for the Dominican economy. The United States applies a 12.5% tariff on certain products exported from the Dominican Republic and Costa Rica, a measure increasing pressure on the country’s key export sectors.

The experts’ recommendation

Given the measure’s entry into force, Deloitte recommends companies assess their exposure, review their use of the benefits of the Free Trade Agreement between the Dominican Republic, Central America and the United States (Cafta-DR) and adopt strategies that reduce the tariff’s impact.

Why it matters

The US is the DR’s main trading partner: it concentrates most exports and foreign investment. A 12.5% tariff can make Dominican products more expensive in the US market and reduce competitiveness against other regional suppliers.

The key figure

12.5% additional tariff. The cost Dominican and Central American exporters must now absorb (or renegotiate).