DR gets 10% tariffs on exports as US disrupts global trade

[Dolores]

Dominican exporters are being levied a 10% tariff when entering the United States, despite the DR-CAFTA free trade agreement signed with the United States. On Wednesday, 2 April 2025, US President Donald Trump announced the new scheme of tariffs aimed at bolstering manufacturing in the United States. In 2024, the US goods and services trade deficit reached $918.4 billion, a 17% increase from 2023, with the goods deficit hitting a record $1.2 trillion. The new tariff will be effective as of 5 April 2025.

The tariff impacts exports from Dominican free zones and general exports. Nevertheless, given tariffs levied to other countries abroad, the DR could gain new businesses. Nearshoring in the Dominican Republic now becomes more attractive as the country received the lowest in the new tariffs on trade announced on 2 April 2025. The Dominican Republic is allocated 10%...

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[Notengo]

Economist Henri Hebrard speaking on Esta Noche con Mariasela feels it is likely buyers in the US will ask the Dominican exporters to absorb the tariff in their export prices.

Nope. US customers will have to pay for the tariff’s . At 10% the DR is still ‘lucky’ though. All that these tariff’s will cause is a global trade war, inflation and higher prices for every consumer (including US) and a possible recession.

 

[chico bill]

And the tarriffs imposed on US products from the US? As I understand the DR started a phase out period on some tarriffs on products over 20 years. But there is still a luxury tarriff on many products between 15 & 60 percent..
The DR government will cut themselves a chunk off everyone's imports

 

[Joseph NY2STI]

Sounds like the big dog is finally wagging the tail.

 

[Notengo]

Sounds like the big dog is finally wagging the tail.

Looks like the big dog is chasing its own tail and won’t realize until its bitten.

 

[cavok]

The DR has been cheating on tariffs for a long time. If they level the playing field, the tariffs will go away.

 

[Joseph NY2STI]

Looks like the big dog is chasing its own tail and won’t realize until its bitten.

We shall see, but my money is on DJT. In the meantime, don't miss out on this excellent buying opportunity.

 

[M4kintosh]

Abinader administration reacted very fast, but in a very cautious way. Very moderate:

Abinader sobre arancel de EEUU: “República Dominicana está en una posición relativamente ventajosa”

Abinader señaló que República Dominicana se encuentra en menor nivel de aranceles

listindiario.com

Dominican industrialists reacted, too. They reject the tariffs:

Adoexpo expresa preocupación ante aranceles impuestos por el presidente Trump

El presidente estadounidense impuso un arancel del 10 % a los productos de República Dominicana

www.diariolibre.com

Economist: "This will hit hard the DR exports"

https://www.diariolibre.com/economia/negocios/2025/04/02/aranceles-de-trump-son-duro-golpe-a-exportaciones-de-rd/

In my personal opinion, it will impact prices on cigars, textiles and rum that's being sold to US markets anytime soon. US retailers already thinking to increase prices on Dominican goods.

 

[Ecoman1949]

I’m surprised goods under the DR- CAFTA aren’t exempt from the 10% tariff. Products listed under CUSMA are exempt from all tariffs.

Not surprised Abinader is taking a low key approach. Counter DR tariffs on US imported goods would anger Trump and raise the stakes. The tariffs could have a short life.

Stock markets world wide are way down today, especially in the US, where two trillion dollars of financial worth evaporated this morning.

One car manufacturer is shutting down plants today in Canada and the US for two weeks to figure out who can supply what parts and for how long. 4100 workers laid off in total. Auto unions said it would take a week or two for this to happen.

US tariffs, 37% on Chinese goods, may be the Achilles’ heel that stops or alters the Trump administration tariffs. A significant increase in the goods on Costco and other big box store shelves is going to create consumer blowback in the US.

Republicans and Democrats passed a vote in the Senate yesterday condemning Trumps use of an Emergency Order to use tariffs. It probably won’t pass in the house but it’s a sign of rising political opposition to the tariffs. If it did pass. Trump would veto it.

It took approximately two months for the Chinese tariffs to stop during Trumps last administration. Some Trump officials are hinting the tariffs are only a negotiating starting point. They may be short lived for some countries.

The DR will be fine. The rate is only 10%, easily absorbed by consumers. More to the point, the Chinese have a vested financial interest in the DR. The DR can weather US financial storms with China’s assistance.

 

[CristoRey]

Lets take a hard look at the tariffs the Dominican Republic has imposed on the USA and get to the negotiation table ASAP.