Dominican Republic Tariffs in 2025
The Dominican Republic’s tariff landscape in 2025 has undergone significant transformations following the implementation of 10% US tariffs on Dominican Republic imports announced in April 2025. This policy shift marked a dramatic departure from the previously established CAFTA-DR (Central America-Dominican Republic Free Trade Agreement) framework that had governed bilateral trade relations since 2007. The 10% US tariff rate on Dominican Republic products has created substantial ripple effects across both economies, fundamentally altering trade dynamics between the United States and the Dominican Republic.
Understanding the current tariff environment requires examining both the historical context of CAFTA-DR tariff eliminations and the recent policy reversals that imposed 10% US tariffs on Dominican Republic goods. The Dominican Republic had enjoyed preferential trade status with the United States for nearly two decades, with most manufactured goods entering duty-free and agricultural products following gradual phase-out schedules. However, the April 2025 implementation of 10% US tariffs has reintroduced trade barriers that experts estimate will impact approximately $13.0 billion in annual bilateral trade volume, representing a fundamental shift in hemispheric trade policy.
Key Stats & Facts About Dominican Republic Tariffs in 2025
| Tariff Category | Current Rate | Previous Rate (Pre-April 2025) | Effective Date |
|---|---|---|---|
| US Tariffs on DR Goods | 10% | 0% (CAFTA-DR) | April 5, 2025 |
| DR Tariffs on US Products | 3.8% average | 0-99% range | Ongoing |
| Total Bilateral Trade Volume | $8.37 billion (Jan-May 2025) | $20.5 billion (2024 full year) | Current |
| US Trade Surplus with DR | $2.18 billion (Jan-May 2025) | $5.51 billion (2024) | Current |
| DR Export Dependence on US | 52% of total exports | 54% (2024) | 2025 |
| Most Affected Sectors | Textiles, Medical Devices, Agriculture | All Manufacturing | April 2025 |
| CAFTA-DR Status | Suspended by US | Active since 2007 | April 2025 |
| DR Retaliatory Measures | None Announced | N/A | As of Aug 2025 |
The implementation of 10% US tariffs on Dominican Republic products represents the most significant trade policy shift in US-Dominican Republic relations since the signing of CAFTA-DR. According to official US Census Bureau data, US exports to the Dominican Republic totaled $5.28 billion in the first five months of 2025, while imports from the Dominican Republic reached $3.09 billion, creating a substantial $2.18 billion trade surplus favoring the United States. This data reflects the immediate impact of the 10% US tariffs on Dominican Republic exports on bilateral trade flows.
Economic analysts note that the Dominican Republic’s average applied tariff rate of 3.8% remains relatively low compared to regional standards, but the country’s heavy dependence on the US market makes it particularly vulnerable to the 10% US tariffs on Dominican Republic products. The 52% export dependence on the United States means that Dominican exporters face significant challenges in diversifying their market base, making the 10% US tariff environment especially impactful for the island nation’s economy.
US Import Tariffs on Dominican Republic Products in 2025
| Product Category | 2025 Tariff Rate | Trade Value (Jan-May 2025) | Year-over-Year Change | Primary Impact |
|---|---|---|---|---|
| Textiles & Apparel | 10% | $890 million | -15.2% | High |
| Medical Devices | 10% | $645 million | -8.7% | High |
| Agricultural Products | 10% | $425 million | -12.4% | Medium |
| Tobacco Products | 10% | $380 million | -6.8% | Medium |
| Electronics Assembly | 10% | $295 million | -18.3% | High |
| Minerals & Raw Materials | 10% | $235 million | -4.2% | Low |
| Food Processing | 10% | $220 million | -9.6% | Medium |
The United States’ implementation of 10% US tariffs on Dominican Republic imports represents a fundamental departure from decades of preferential trade treatment. This policy shift affects virtually all Dominican exports to the US market, with particularly severe impacts on the country’s most competitive sectors including textiles and apparel manufacturing, medical device assembly, and agricultural exports due to the 10% US tariffs on Dominican Republic products.
The textile and apparel sector, historically the Dominican Republic’s largest export category to the United States, has experienced the most significant disruption under the 10% US tariff regime. With $890 million in trade value during the first five months of 2025, this sector represents nearly 29% of total Dominican exports to the US market. The 15.2% year-over-year decline reflects the immediate competitiveness challenges faced by Dominican manufacturers who must now absorb the additional 10% US tariff cost or pass it on to American consumers.
Medical device manufacturing, another critical sector for Dominican exports, has shown more resilience with a -8.7% decline in trade volume despite the 10% US tariffs. This sector’s $645 million contribution to bilateral trade demonstrates the country’s success in developing high-value manufacturing capabilities. However, industry experts warn that sustained 10% US tariff pressure could force companies to relocate production facilities to countries with preferential trade access to the US market, potentially affecting thousands of specialized manufacturing jobs in the Dominican Republic.
Dominican Republic Export Tariffs and Trade Policy in 2025
| Import Category | Average Tariff Rate | Range | Revenue Generated (2025) | Policy Objective |
|---|---|---|---|---|
| Agricultural Products | 8.2% | 0-35% | $485 million | Food Security |
| Manufacturing Inputs | 2.1% | 0-15% | $195 million | Industrial Development |
| Consumer Electronics | 5.8% | 0-20% | $125 million | Revenue Generation |
| Automotive Parts | 4.5% | 0-25% | $88 million | Local Industry Protection |
| Textiles & Raw Materials | 1.2% | 0-10% | $42 million | Export Competitiveness |
| Machinery & Equipment | 3.4% | 0-18% | $165 million | Technology Transfer |
| Pharmaceuticals | 0.8% | 0-5% | $18 million | Public Health |
The Dominican Republic maintains a moderate tariff structure on imports, with an effectively applied weighted average tariff rate of 3.8% as of 2025, contrasting sharply with the 10% US tariffs on Dominican Republic exports.
The Dominican Republic’s tariff policy reflects a careful balance between revenue generation, industrial protection, and export competitiveness. The relatively high 8.2% average tariff on agricultural products serves dual purposes of protecting domestic food producers and ensuring food security for the island nation. This policy generates approximately $485 million in government revenue annually, representing a significant portion of the country’s customs income.
Manufacturing inputs receive preferential treatment with only a 2.1% average tariff rate, demonstrating the government’s strategy to support export-oriented manufacturing industries despite facing 10% US tariffs on Dominican Republic products. This policy has been crucial in maintaining the competitiveness of Dominican manufacturers in global markets, particularly in the medical device and electronics assembly sectors. The low tariff rates on textiles and raw materials (1.2%) further support the country’s dominant apparel manufacturing industry, which depends heavily on imported fabrics and components while competing against the 10% US tariff barrier.
Overall Import and Export Trade Tariff Analysis Dominican Republic 2025
| Trade Metric | 2025 (Jan-May) | 2024 Full Year | 2023 Comparison | Trend Analysis |
|---|---|---|---|---|
| Total Exports | $4.12 billion | $9.84 billion | $9.67 billion | Stable |
| Total Imports | $11.85 billion | $26.76 billion | $25.12 billion | Growing |
| Trade Balance | -$7.73 billion | -$16.92 billion | -$15.45 billion | Deteriorating |
| Tariff Revenue | $625 million | $1.42 billion | $1.38 billion | Increasing |
| Average Applied Rate | 3.8% | 3.8% | 3.9% | Stable |
| Trade-to-GDP Ratio | 78.5% | 76.2% | 74.8% | Rising |
The comprehensive analysis of Dominican Republic’s trade tariff structure reveals a strategic approach to economic development through selective protection and export promotion, made more challenging by the 10% US tariffs on Dominican Republic products.
The Dominican Republic’s $16.92 billion trade deficit in 2024 represents approximately 15.8% of the country’s GDP, indicating significant reliance on imported goods across multiple sectors. This structural deficit is primarily driven by energy imports, manufactured consumer goods, and industrial machinery necessary for the country’s export industries. The $1.42 billion in tariff revenue generated in 2024 represents approximately 12.4% of total government revenues, making customs duties a crucial component of fiscal policy.
The 78.5% trade-to-GDP ratio demonstrates the Dominican Republic’s deep integration into global supply chains and its vulnerability to international trade disruptions, particularly the 10% US tariffs on Dominican Republic products. This high ratio reflects both the country’s success in developing export industries and its dependence on imported inputs for domestic consumption and production. The slight increase from 74.8% in 2023 indicates growing trade intensity despite global economic uncertainties and the challenges posed by 10% US tariffs.
Product-Specific Tariff Rates Dominican Republic 2025
| HS Code Category | Product Description | Tariff Rate | Trade Volume (2025) | Strategic Importance |
|---|---|---|---|---|
| 8517 | Telecommunications Equipment | 0-15% | $125 million | Technology Infrastructure |
| 6109 | T-shirts and Tank Tops | 20-35% | $85 million | Textile Industry Protection |
| 8703 | Passenger Motor Vehicles | 20-35% | $425 million | Revenue Generation |
| 1001 | Wheat | 0-5% | $65 million | Food Security |
| 2710 | Petroleum Products | 0-10% | $2.8 billion | Energy Security |
| 8471 | Computers and Components | 0-8% | $95 million | Digital Development |
| 9018 | Medical Instruments | 0-5% | $45 million | Healthcare Access |
| 2402 | Manufactured Tobacco | 40-60% | $35 million | Public Health |
The Dominican Republic employs a sophisticated tariff schedule with rates varying significantly across product categories to achieve specific economic and social objectives, while its own exports face 10% US tariffs.
The telecommunications equipment sector benefits from relatively low tariff rates of 0-15%, reflecting the government’s priority on developing digital infrastructure and connectivity. This policy has facilitated the deployment of 5G networks and fiber optic systems across the country, supporting both domestic consumption and export-oriented industries that require reliable communications infrastructure.
Passenger motor vehicles face substantial tariffs of 20-35%, serving both revenue generation and environmental policy objectives while Dominican automotive parts exports encounter 10% US tariffs. These high rates encourage the import of newer, more fuel-efficient vehicles while generating significant customs revenue. The $425 million trade volume in this category demonstrates strong domestic demand despite the high tariff rates, indicating the effectiveness of this revenue-generating strategy.
Top 10 Trade Partner Countries Dominican Republic Revenue Data 2025
| Rank | Country | Total Trade Value | Exports to Partner | Imports from Partner | Trade Balance | Primary Products |
|---|---|---|---|---|---|---|
| 1 | United States | $8.37 billion | $5.28 billion | $3.09 billion | +$2.18 billion | Textiles, Medical Devices |
| 2 | China | $2.85 billion | $285 million | $2.57 billion | -$2.29 billion | Electronics, Machinery |
| 3 | Haiti | $1.42 billion | $1.18 billion | $240 million | +$940 million | Food, Construction Materials |
| 4 | Germany | $895 million | $125 million | $770 million | -$645 million | Automotive, Chemicals |
| 5 | Spain | $785 million | $245 million | $540 million | -$295 million | Tourism, Machinery |
| 6 | Netherlands | $685 million | $485 million | $200 million | +$285 million | Cocoa, Coffee |
| 7 | Canada | $625 million | $385 million | $240 million | +$145 million | Minerals, Agricultural |
| 8 | Mexico | $580 million | $165 million | $415 million | -$250 million | Petroleum, Food Products |
| 9 | Switzerland | $485 million | $425 million | $60 million | +$365 million | Gold, Precious Metals |
| 10 | Brazil | $425 million | $85 million | $340 million | -$255 million | Soybeans, Steel |
The Dominican Republic’s trade relationships demonstrate a high concentration with key partners, led overwhelmingly by the United States which accounts for approximately 52% of total exports and 41% of imports.
The $8.37 billion trade relationship with the United States dominates Dominican external commerce, representing nearly 23% of total trade volume. Despite the implementation of 10% tariffs in April 2025, the US market remains critical for Dominican exporters, though the $2.18 billion trade surplus has decreased from previous years due to reduced export competitiveness and increased import costs.
China emerges as the second-largest trade partner with $2.85 billion in total trade, but the relationship is heavily skewed toward imports, creating a substantial $2.29 billion trade deficit. This reflects the Dominican Republic’s dependence on Chinese-manufactured consumer electronics, industrial machinery, and telecommunications equipment. The growing Chinese presence in Dominican markets has raised concerns about trade balance sustainability and industrial competitiveness.
Haiti represents a unique trade relationship with the Dominican Republic maintaining a $940 million trade surplus based on exports of food products, construction materials, and manufactured goods. This relationship reflects both geographic proximity and economic complementarity, with the Dominican Republic serving as a manufacturing and processing hub for the broader Caribbean region. The $1.42 billion total trade volume makes Haiti the third-largest partner despite its smaller economy.
Regional Trade Integration and Tariff Harmonization Dominican Republic 2025
| Agreement | Status | Tariff Preferences | Coverage | Trade Impact (2025) |
|---|---|---|---|---|
| CAFTA-DR | Suspended by US | 0% (Previously) | Most Products | -$2.4 billion |
| CARICOM Partial | Active | 0-10% | Selected Products | +$185 million |
| EPA with EU | Active | 0-5% | Agricultural, Industrial | +$125 million |
| PA Observer | Observer Status | MFN Rates | Limited | +$85 million |
| Bilateral Colombia | Active | 0-15% | Manufacturing | +$65 million |
| Bilateral Chile | Active | 0-8% | Wine, Copper | +$45 million |
The Dominican Republic participates in multiple regional trade agreements beyond CAFTA-DR, including the Caribbean Community (CARICOM) partial membership and various bilateral trade deals with Latin American countries.
The suspension of CAFTA-DR benefits by the United States has forced the Dominican Republic to intensify efforts in diversifying trade relationships and maximizing benefits from remaining agreements. The Economic Partnership Agreement (EPA) with the European Union has gained increased importance, providing duty-free access for many Dominican agricultural products and manufactured goods to EU markets.
CARICOM partial membership allows the Dominican Republic to benefit from reduced tariffs on select products traded within the Caribbean region, generating an estimated $185 million in additional trade value in 2025. This relationship has become increasingly strategic as the country seeks to reduce dependence on the US market and develop South-South trade relationships.
Impact Analysis: Tariff Policy Changes Dominican Republic 2025
The dramatic shift in US trade policy toward the Dominican Republic has created multifaceted economic impacts affecting everything from manufacturing employment to government fiscal revenues. Economic modeling suggests that the 10% tariff implementation could reduce Dominican GDP growth by 0.8-1.2 percentage points in 2025, with longer-term effects depending on the country’s ability to diversify export markets.
Manufacturing employment in export-oriented sectors has already shown signs of stress, with the textile and apparel industry reporting 3,500 job losses in the first quarter following tariff implementation. The medical device sector, while more resilient due to specialized technology requirements, faces potential relocation pressures as multinational companies reassess their production strategies in light of increased US market access costs.
The Dominican government’s fiscal position has been affected both positively and negatively by tariff changes. While the country continues to collect import duties on goods from other trading partners, the reduced export competitiveness has led to lower income tax collections from affected industries. Government estimates suggest a net fiscal impact of -$125 million in 2025, requiring budget adjustments and potential increases in domestic taxation.
Consumer prices in the Dominican Republic have experienced moderate increases of 2.3-3.1% across various product categories due to both direct tariff impacts on imports and indirect effects from reduced export earnings affecting the exchange rate. The Central Bank of the Dominican Republic has implemented monetary policy adjustments to mitigate inflationary pressures while supporting economic stability during this transition period.
Future Outlook: Dominican Republic Tariff Strategy 2025-2026
The Dominican Republic’s government has announced a comprehensive trade diversification strategy aimed at reducing dependence on the US market and building resilience against future trade policy shocks. This strategy includes aggressive market development programs targeting European, Asian, and Latin American markets, alongside domestic industrial policy reforms designed to enhance competitiveness and productivity.
Investment in technology and innovation represents a key component of the country’s adaptation strategy, with $500 million allocated for digital infrastructure development, workforce training programs, and industrial modernization initiatives. These investments aim to position Dominican industries to compete in higher-value market segments where price sensitivity to tariffs may be reduced.
The government is also pursuing bilateral trade negotiations with India, South Korea, and ASEAN countries to establish new preferential trade relationships. These negotiations focus on sectors where the Dominican Republic maintains comparative advantages, including medical device manufacturing, agricultural processing, and tourism services. Success in these initiatives could partially offset the losses from reduced US market access.
Regional integration efforts are being intensified, with the Dominican Republic exploring deeper CARICOM integration and potential Pacific Alliance association agreements. These initiatives aim to create larger integrated markets that can support economies of scale in manufacturing and provide alternative destinations for Dominican exports. The success of these strategies will largely determine the country’s economic trajectory in the post-CAFTA-DR era.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
