Potential impact of reciprocal tariffs imposed by the United States of America on the Dominican Republic against Latin America: Projections and economic consequences: 2024-2025

Abstract

The imposition of reciprocal tariffs by the United States, announced on April 2, 2025, has raised concerns in Latin America due to its potential to alter the region's trade dynamics. This article analyzes the direct impact of a 10% tariff on exports from the Dominican Republic and other Latin American countries, comparing the economic consequences and projecting the estimated costs for the country. Although the Dominican Republic faces a base tariff similar to that of most countries in the region, its high dependence on the US market, especially in sectors such as textiles, tobacco, and medical devices, could generate significant losses. However, certain key products are exempt, which partially mitigates the impact. Economic projections based on recent data are presented and compared with the regional context, highlighting challenges and opportunities for the country.