El Salvador–U.S. “Reciprocal Trade” Deal: Tariff Relief Now, Critical Minerals Next
Key Points
- The U.S. agreed to remove an extra “reciprocal tariff” layer for listed Salvadoran goods and cap it at 10% elsewhere.
- El Salvador committed to “allow and facilitate” U.S. investment across the full critical-minerals chain, from exploration to export.
- The pact ties trade benefits to tighter cooperation on sanctions, export controls, and investment-security rules.
President Nayib Bukele says El Salvador has secured a “reciprocal trade” agreement with the United States that does two things at once: it eases near-term tariff pressure on Salvadoran exports.
And sets the stage for U.S.-backed projects in critical minerals, a sector Bukele has positioned as strategic for Washington’s supply chains.
At the center of the deal is tariff relief tied to specific product schedules. The agreement’s annexes commit the United States to remove an additional reciprocal tariff for covered Salvadoran-origin goods listed under U.S. tariff codes.
For products that qualify under CAFTA-DR rules of origin in the covered lines, the U.S. also agrees it will not apply the extra reciprocal tariff.
For items outside those categories, the agreement sets a ceiling: the additional reciprocal tariff “shall be no higher than 10%.”
El Salvador Removes Key Tariffs
Salvadoran officials framed the practical outcome as eliminating the 10% burden for key agricultural and industrial lines, with textiles and apparel among the most sensitive. The U.S. market is decisive for the Salvadoran economy.
U.S. government trade data show that in 2024 the United States exported about $4.54 billion in goods to El Salvador and imported about $2.31 billion from El Salvador, underscoring why even a single tariff layer can reshape competitiveness in low-margin manufacturing.
The second pillar is minerals. El Salvador commits to allow and facilitate U.S. investment across the full chain for critical minerals and energy resources: exploration, mining, extraction, refining, processing, transporting, distributing, and exporting.
The text also obliges El Salvador to support investors with key infrastructure, including power, telecommunications, and transportation, on terms no less favorable than those offered to domestic investors in similar circumstances.
That push follows El Salvador’s December 23, 2024 law reauthorizing metallic mining after a seven-year ban, a move criticized by environmental groups concerned about water and contamination risks.
Bukele has defended reopening mining by pointing to U.S.-identified strategic materials such as rhenium and silicon.
Beyond commerce, the agreement embeds economic-security alignment: cooperation on sanctions and export controls, investment-security considerations linked to national security, customs cooperation to address duty evasion.
And provisions touching technical regulations and import licensing. It also creates a bilateral working group and enters into force five days after both sides confirm their domestic procedures are complete.
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This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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