Key facts
- US proposes 12.5% tariff on Costa Rican products.
- Reason cited is failure to enforce prohibitions on goods produced with forced labor.
- This failure harms US commerce.
- Costa Rica can submit comments by July 6.
- A hearing is scheduled for July 7.
- Costa Rica is among 54 countries identified with similar issues.
The Office of the United States Trade Representative (USTR) has proposed an additional 12.5% tariff on Costa Rican products. The USTR stated that Costa Rica's failure to impose and effectively enforce prohibitions on imports produced with forced labor harms U.S. commerce. Costa Rica has until July 6 to submit written comments on the investigation's findings, and a hearing is scheduled for July 7 before any tariffs are implemented. Costa Rica is one of 54 countries identified by the U.S. for similar issues, including other CAFTA-DR members. While any tariff measure might affect multiple regional countries, potentially mitigating competitive disadvantages for Costa Rica, the tariffs could slow the country's economic growth, which is already projected to moderate. The IMF has cited rising global trade protectionism as a risk to Costa Rica's growth outlook. This marks the first direct tariff threat against Costa Rican exports under President Laura Fernández's administration. The government is expected to intensify negotiations with the U.S. to avoid the tariffs, though the measure may be influenced by broader U.S. political considerations.