Costa Rica Tariff of 12.5 Percent Holds Despite Friendly US Policy
Central America · ECONOMY
Key Facts
- —Rate a 12.5 percent US tariff on Costa Rican goods, in force since 24 July 2026
- —Legal basis Section 301 of the US Trade Act of 1974, after a USTR investigation of 60 economies covering 99 percent of US imports
- —Reason Washington says Costa Rica lacks an effective ban on imports of goods made with forced labor
- —Exclusions coffee, pineapple, banana and orange juice kept; cuttings, vegetable and fruit seeds and certain refined sugars added
- —Peers the Dominican Republic, Chile, Colombia, Nicaragua, Peru, Brazil and Venezuela are also at 12.5 percent; Guatemala, Honduras and El Salvador face 10
Deportation deals, dairy concessions and a 5G alliance were not enough: Costa Rica sits in the 12.5 percent tariff group alongside seven other Latin American economies, while its free-zone engine of medical devices pays the full rate.
The Costa Rica tariff of 12.5 percent on exports to the United States has been in force since 24 July 2026, the result of a Section 301 investigation by the Office of the US Trade Representative under the Trade Act of 1974. The probe covered 60 economies that together account for 99 percent of US imports, and concluded that Costa Rica lacks an effective prohibition on imports of goods produced with forced labor. As Semanario Universidad summed it up on 26 August, not even a compliant, accommodating policy toward Washington spared the country from the new duties.
What the Costa Rica tariff covers and what it spares
The Costa Rica tariff raised the rate on the country’s exports from a 10 percent baseline to 12.5 percent, despite arguments presented by Costa Rican negotiators in coordination with the private sector, the foreign trade ministry, COMEX, confirmed on 24 July. Costa Rica shares the 12.5 percent group with the Dominican Republic, Chile, Colombia, Nicaragua, Peru, Brazil and Venezuela, while Mexico, Guatemala, Honduras and El Salvador face an additional tariff of 10 percent.
COMEX kept the exclusions already in force for key farm exports, among them coffee, pineapple, banana and orange juice. ‘The list of excepted products of interest to the Costa Rican export offer is also expanded, including cuttings, vegetable and fruit seeds, as well as certain types of refined sugars,’ foreign trade minister Indiana Trejos said.
‘Costa Rica is recognized for its commitment to international trade based on clear rules and respect for labor rights,’ Trejos added. ‘From COMEX we will continue working in a coordinated manner with the productive sector and the authorities of the United States to improve access for national products and promote free trade between both countries.’
A compliant policy that did not pay off
The political sting of the measure is the list of concessions San José made first. Under the previous administration, Rodrigo Chaves, today finance minister, signed an agreement to receive deportees from the United States, arguing that ‘love is repaid with love.’ Productive sectors complain that Costa Rica flexibilized quality requirements for US dairy products and opened phytosanitary rules for fresh potatoes without receiving anything in return, and the government aligned itself with Washington on cybersecurity, technology and 5G infrastructure, in what Secretary of State Marco Rubio called an agenda ‘uniting us against the threat of Chinese telecommunications.’
None of it moved the tariff line. Washington first imposed reciprocal tariffs of 15 percent on Costa Rica, above the 10 percent applied to much of the region, until the US Supreme Court struck those down in February, ruling that setting them was a power of Congress. The administration then turned to Section 301 to reach the current Costa Rica tariff, Semanario Universidad reported.
The contrast with Mexico is stark: under its newly renegotiated USMCA treaty, Mexico secured a zero rate for 85 percent of its exports, leaving Costa Rica at a visible disadvantage inside its own region.
Economists warn of lost competitiveness
Trade consultant Renzo Céspedes told Semanario Universidad that Costa Rica is at a clear disadvantage, taxed well above many regional competitors. While farm exports such as coffee, banana, pineapple, vegetables, tubers, flowers and ornamental plants were spared, he warned that practically everything produced in the free-zone regime, including medical devices and pharmaceuticals, must pay it. ‘Costa Rican negotiators did very little,’ he said. ‘We acted late and with little diligence in the tariff negotiations, and that is now billing us.’
The exposure is large. Medical devices were Costa Rica’s top export in 2025 with a 31 percent share and more than US$10.8 billion in sales, according to Semanario Universidad, and they are precisely the products that remain outside the exclusions. Economist Luis Vargas, of the Colegio de Ciencias Económicas, said small economies are losing negotiating ground as trade becomes a geopolitical weapon, while Fernando Rodríguez, of the National University’s Economic and Social Observatory, noted that the free trade agreement with the United States never delivered the legal certainty of market access Costa Rica sought.
ECLAC’s executive secretary, José Manuel Salazar-Xirinachs, framed the Costa Rica tariff as part of a systemic shift. ‘There is no way to shield yourself when interdependence is instrumentalized by the great economic powers,’ he said, recommending that countries diversify alliances to reduce dependence on a single destination. The commission projects Costa Rica’s economy will grow 3.7 percent in 2026, 0.8 percentage points less than previously expected and the second-weakest forecast in Central America, with the free-zone engine already 14.3 percentage points back.
Frequently Asked Questions
What is the Costa Rica tariff rate?
The Costa Rica tariff is 12.5 percent on exports to the United States, in force since 24 July 2026, up from a 10 percent baseline applied to economies Washington considers lacking effective forced-labor import bans.
Which products are excluded from the Costa Rica tariff?
The Costa Rica tariff keeps earlier exclusions for coffee, pineapple, banana and orange juice, and COMEX added cuttings, vegetable and fruit seeds and certain refined sugars. Free-zone goods such as medical devices pay the full rate.
Why did the United States impose the Costa Rica tariff?
The Costa Rica tariff stems from a Section 301 investigation under the Trade Act of 1974 covering 60 economies that represent 99 percent of US imports, which found Costa Rica lacks what Washington considers an effective prohibition on goods made with forced labor.
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