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Dominican Republic Confident It Can Offset Impact of New US Tariffs
The Dominican government is holding ongoing discussions with U.S. authorities following the introduction of a 12.5% tariff on certain Dominican exports, while officials insist the country can preserve its competitiveness in its largest export market.
The Dominican Republic is engaged in continuous talks with the United States to lessen the impact of a new 12.5% tariff imposed on Dominican exports, according to Industry, Commerce and MSMEs Minister Eduardo Sanz Lovatón.
Speaking during an interview on Diálogo Libre, Sanz Lovatón expressed confidence that the country will remain competitive despite the measure, noting that this is the third time the Dominican Republic has been affected by tariff actions introduced by the United States.
“This process will conclude very well, without losing an ounce of competitiveness,” the minister said, expressing optimism about the ongoing discussions between both governments.
Government Working With U.S. Authorities
Sanz Lovatón explained that the tariff is linked to the absence of a previously established protocol to prevent the importation of goods associated with forced labor, a requirement that forms part of the trade policy promoted by the administration of President Donald Trump.
According to the minister, Washington is encouraging its trading partners to strengthen safeguards against forced labor while continuing to pursue broader trade protection measures. Dominican authorities are working with their U.S. counterparts to address those requirements and reduce the tariff’s impact on exporters.
Trade Agreement Limits the Impact
The minister emphasized that approximately 40% of Dominican exports to the United States remain exempt from the new tariff under the Dominican Republic–Central America Free Trade Agreement (DR-CAFTA). He added that the country’s increasingly diversified export base has also helped cushion the effects of the measure.
Those factors, he said, have enabled the export sector to maintain its momentum despite the new trade restrictions.
Exports Continue to Grow
Official figures show that Dominican exports reached US$7.8978 billion during the first half of 2026, representing a 14% increase compared with the same period a year earlier. Total exports for 2025 amounted to US$14.374 billion, reflecting annual growth of 11.3%.
Sanz Lovatón said the government’s priority is to preserve that growth by maintaining the country’s competitiveness and preventing future trade measures from undermining the performance of the Dominican Republic’s export sector.
