A temporary 10% global tariff has been levied on Dominican exports as part of a 150-day surcharge under Section 122 of the United States Trade Act of 1974. This measure took effect at 12:01am EST on 24 February 2026. While the Trump Administration has signaled a possible increase to 15%, the current operative rate remains 10% for most non-exempt goods.
For the Dominican Republic, qualifying textile and apparel products imported under the DR-CAFTA agreement are specifically excluded from this new duty. However, other major Dominican exports, including medical devices and instruments (US$1.3 billion in exports in 2024), jewelry, and cigars that make up the larger portion of Dominican free zone exports, now face the 10% surcharge.
The United States is the Dominican Republic’s primary trading partner, absorbing over 53% of its total exports. Industry analysts warn that the new costs could erode the competitive edge of Dominican free trade zones, which send more than 70% of their production to US markets.
Beyond the immediate financial impact, local exporters are grappling with regulatory uncertainty, as the administration has indicated the rate could rise to 15% before the 150-day period concludes in July.
Government officials and private sector leaders are currently evaluating the scope of the policy, with many calling for a diplomatic push to secure exemptions similar to those granted for certain agricultural products and pharmaceuticals.
The 20 February 2026 Supreme Court of the United States does not apply to this tariff.
The Invalidated Order (IEEPA Tariffs)
The Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. This ruling struck down the “reciprocal” tariffs and the “drug trafficking” tariffs (affecting Mexico, Canada, and China) that had been the center of legal challenges throughout 2025.
The Court held that tariffs are a form of taxation, a power vested solely in Congress under Article I of the Constitution, and that the executive branch lacks inherent authority to impose them during peacetime without explicit congressional delegation.
The Current Order (Section 122 Tariffs) is a new, different order issued immediately following the Supreme Court’s ruling.
To maintain the tariff regime, President Trump invoked Section 122 of the Trade Act of 1974. This specific authority allows the President to impose a temporary import surcharge (up to 15%) for a period of 150 days to address “fundamental international payments problems.”
The new Section 122 order has not been invalidated by the Supreme Court. It was designed specifically to bypass the legal issues of the previous IEEPA-based orders and remains in effect for now.
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Noticias SIN
Noticias SIN
26 February 2026