US imposes 12.5% forced-labor tariff on Dominican goods; negotiations underway

Washington's new duties on Dominican exports take effect as Santo Domingo seeks relief, adding to a broader wave of US trade measures targeting dozens of nations.

By Handelsavisen Newsroom · Automated 2026-07-24 10:50 UTC · 1 min read

The United States has imposed a 12.5% tariff on goods from the Dominican Republic, effective July 24, citing concerns over forced labor practices.

The measure is part of a wider US trade initiative targeting approximately 60 countries with duties ranging from 10% to 12.5%.

Despite the immediate implementation, the Dominican Republic’s industry ministry remains confident that the tariff can be negotiated down.

Officials are actively engaging with US counterparts to secure relief, arguing that the blanket application of forced-labor tariffs may not accurately reflect conditions across all sectors of the Dominican economy.

This development arrives as President Donald Trump prepares to unveil a new round of tariffs targeting dozens of additional nations as early as this week, according to reports. The broader strategy aims to pressure countries accused of tolerating forced labor, marking a significant escalation in US trade policy.

For investors, the introduction of these tariffs introduces new cost headwinds for companies with supply chains or export exposure to the Dominican Republic.

While the immediate market impact may be limited given the country's relatively small share of global trade, the precedent set by Washington could lead to further trade disruptions if negotiations fail.