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% tariffs on exports, even when the DR-CAFTA free trade agreement is valid. The United States is the leading export market for the Dominican exports.
Mexico and Canada, participants in the North American Free Trade Agreement, have not been included in the Day of Liberation list of new tariffs.
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.
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3 April 2025