According to the Central American Bank for Economic Integration (CABEI), exports from Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic grew by around 10% in the first half of 2025. The institution explained that the trend was partly due to companies advancing purchases before the April tariff implementation.
Since April, the U.S. administration has applied a universal 10% tariff on imports. Costa Rica has faced a 15% tariff since August, while Nicaragua has been subject to 18% since April. CABEI highlighted that the new tax structure increases the risk of negative effects on the regional economy, given the high level of trade dependence on the U.S.
The bank stated, “Analyses conducted by the CABEI indicate that the increase in tariffs could negatively affect the regional economy,” as more than 45% of total exports from Honduras, Nicaragua, Costa Rica, and the Dominican Republic are directed to the U.S. Regional exports to the U.S. represent approximately 40% of total sales and have doubled over the past 25 years, with an average annual growth of 3.4%.
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Data from the Secretariat for Central American Economic Integration (SIECA) show steady export growth: US$11 billion in 2020, US$13.5 billion in 2021, US$15 billion in 2022, US$16 billion in 2023, and US$17.35 billion in 2024.
CABEI warned that in the short term, there could be closures of less competitive companies and reduced investment in the tradable sector, especially in textiles, apparel, food, and agriculture. However, it noted that the impact on productive sectors remains uncertain, as other global economies are subject to even higher tariffs.
“In this context, strengthening economic resilience, improving competitiveness, and fostering regional integration will be key for the sector to take advantage of new opportunities and maintain its dynamism,” CABEI said.
