How U.S. Tariffs Will affect Costa Rica

On April 2, 2025, U.S. President Donald Trump announced a new tariff policy, imposing a universal 10% tariff on all imports into the United States, with additional “reciprocal tariffs” on certain nations. Costa Rica is among the countries facing the baseline 10% tariff, which took effect on April 5, 2025.   

Impact on Costa Rica’s Economy

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The United States is Costa Rica’s top trading partner, accounting for approximately 47% of its exports, including key products like medical devices, pineapples, and coffee.  Economists warn that these tariffs could raise costs for U.S. importers, potentially reducing demand for Costa Rican products and threatening jobs in export-driven sectors.

Government Response

In response to the tariffs, the Costa Rican government announced plans to engage in dialogue with U.S. authorities to seek better access conditions for Costa Rican products. The Ministry of Foreign Trade emphasized the importance of maintaining strong trade relations with the United States and exploring avenues to mitigate the impact of the tariffs. 

Broader Implications

The tariffs are part of a broader strategy by the Trump administration to address perceived global trade imbalances and protect American jobs. While some Latin American countries received higher tariffs—Nicaragua, for example, faces an 18% tariff—Costa Rica’s 10% tariff still poses significant challenges for its export sectors.   

Economists suggest that Costa Rica should consider diversifying its export markets and reducing dependence on the U.S. to mitigate future risks. Additionally, there is concern that the tariffs could lead to higher prices for U.S. consumers and potential retaliatory measures, further complicating international trade dynamics.

As the situation develops, Costa Rican authorities and businesses will need to adapt to the changing trade environment and seek strategies to maintain economic stability.

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