Adozona Warns 12.5% US Tariff Could Weaken Dominican Free-Zone Competitiveness

• The Dominican Association of Free Zones (Adozona) expressed concern over the United States’ decision to impose a 12.5% tariff on imports from the Dominican Republic and 59 other countries, warning that the measure could create uncertainty in international trade and affect the competitiveness of export-driven economies.
• The organisation is evaluating the scope of the tariffs, possible exemptions, and their impact on Dominican exports, particularly on the free zone sector, which it described as a key partner of the United States in manufacturing, investment, and job creation.
• Adozona highlighted that Dominican free zones play a vital role in regional supply chains, especially in industries such as medical devices, advanced manufacturing, electronics, apparel, and services, helping strengthen U.S. production capacity.
• The association will continue working with Dominican authorities to maintain constructive dialogue with the United States aimed at preserving stable and mutually beneficial trade relations. It also reaffirmed its commitment to complying with national laws, international trade agreements, and high labour and sustainability standards while supporting efforts to protect the country’s competitiveness and investor confidence.
• The tariff is significant because the United States accounted for approximately 72.5% of Dominican free-zone exports in 2024. However, the sector is also closely integrated with US supply chains, with US intermediate inputs equivalent to around 51% of free-zone exports to the US. The eventual impact will therefore depend on product coverage and exemptions, particularly for major export industries such as medical devices, pharmaceuticals and electronics.

(Sources: Dominican Today & IMF)