On Wednesday, President Trump introduced reciprocal tariffs that impose additional tariffs ranging from 10% to 19% on nearly all significant apparel exporters from Latin America to the United States. Previously, the CAFTA-DR nations—Honduras, Nicaragua, Guatemala, El Salvador, the Dominican Republic, and Costa Rica—benefited from a zero percent tariff rate for apparel exports to the US under the Free Trade Agreement. However, the newly implemented US Reciprocal Tariff, aimed at correcting trade practices, now imposes a 10% tariff on these countries, with Nicaragua facing a higher tariff of 19%. This change effectively terminates their duty-free access and significantly alters the cost dynamics of their trade.
Mexico is the sole exception, as it retains tariff-free access under the United States-Mexico-Canada Agreement (USMCA).
Haiti, which has never received full duty-free access like its counterparts, already faced average tariffs of 12.36% on apparel exports. With the recent addition of a new 10% tariff under this policy, Haiti’s overall average tariff rate has escalated to 22.36%—a staggering 181% increase. This sharp rise poses a severe threat to Haiti’s export competitiveness and further endangers its already fragile garment industry.
