US 12.5% tariff threatens Dominican export sectors

The United States announced a 12.5% additional tariff on a range of Dominican products, including medical devices, tobacco, textiles, pharmaceuticals and plastics. Analysts note that the measure could erode the competitiveness of Dominican exporters, raise prices and jeopardise jobs in zone‑free factories, especially in the medical‑equipment and garment sectors. Business leaders warned that the tariff widens the gap with Central American competitors that face a 10% rate, potentially prompting relocation of production to lower‑tariff countries such as Mexico.

The Dominican Revolutionary Party (PRD) responded by urging an immediate diplomatic offensive in Washington, proposing a high‑level delegation within 72 hours and activation of dispute‑resolution mechanisms under the Dominican‑Centra­merica‑U.S. Free Trade Agreement (DR‑CAFTA). The party also called for a national labor verification plan, temporary aid for affected sectors, a permanent dialogue table with employers and workers, and accelerated diversification of export markets beyond the United States.

Domestic trade groups, including the Dominican Exporters Association and the National Council of Private Enterprises, echoed concerns that the tariff could raise costs for agro‑industrial, plastic, steel and other manufactured goods, stressing the need for government review of tariff classifications and possible exemptions.