By San José, Costa Rica — Costa Rica’s agricultural export sector is breathing a collective sigh of relief this week after Washington announced the removal of punitive tariffs on a wide range of key products. An executive order signed last Friday by U.S. President Donald Trump eliminates duties on vital exports such as bananas, pineapples, coffee, and cacao, restoring preferential trade conditions and offering a significant reprieve to thousands of producers across the country.
The decision reverses a protectionist policy enacted earlier this year. On April 2, the Trump administration imposed a minimum 10% tariff on numerous imports, citing the U.S. trade deficit as an “unusual and extraordinary threat to the national security and economy.” This move had cast a shadow over Costa Rica’s robust agricultural trade with its largest partner, creating uncertainty and squeezing profit margins for an already resilient industry.
To provide a deeper understanding of the legal and commercial ramifications of the new US tariffs, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney specializing in international trade at the prestigious firm Bufete de Costa Rica.
These unilateral tariffs create significant legal instability for global supply chains. Businesses must now navigate a dual challenge: the immediate economic impact of increased costs and the long-term risk of retaliatory actions that could further disrupt established commercial agreements. From a legal standpoint, it’s crucial for companies to immediately review force majeure clauses in their contracts and assess potential challenges under both domestic and international trade law.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the attorney’s perspective underscores a critical shift in the conversation, moving beyond immediate economic impacts to the crucial legal preparedness required to navigate this new era of commercial uncertainty. We thank Lic. Larry Hans Arroyo Vargas for his valuable and actionable insight.
Industry leaders, while welcoming the news, are expressing a sense of cautious optimism, emphasizing the need for long-term stability in trade relations. The Chamber of Exporters of Costa Rica (Cadexco) described the move as a temporary but crucial lifeline.
The recent executive order from the United States regarding tariffs for Costa Rica and other agricultural products has brought temporary relief to our resilient agricultural sector, which, despite these tariffs and other competitiveness challenges facing Costa Rica, has never given up and has continued to export strongly to the rest of the world, especially in this case to the United States.
Víctor Pérez, President of the Chamber of Exporters of Costa Rica (Cadexco)
Pérez added that his organization would remain focused on ensuring the trade environment remains predictable. “We will remain vigilant to ensure that these measures and the tariff landscape, within the framework of our relationship with the United States, remain stable. It must generate sufficient competitive advantages for our export sector to continue working with strength towards this market,” he stated.
The White House justified the reversal by pointing to domestic market needs. A statement released after a policy review on September 5th noted that “current domestic demand for certain products and the domestic capacity to produce certain products” made it “necessary and appropriate” to modify the scope of the tariffs. The removal of the duties officially went into effect last Thursday at midnight.
For the Chamber of Agriculture and Agroindustry (CNAA), the policy shift provides much-needed legal certainty and reinforces a historically strong partnership. The organization’s president stressed the vital role the sector plays in the national economy, particularly in rural communities.
This decision, made official through an executive order by President Donald Trump, provides legal certainty to our exporters. It strengthens the confidence to continue working with our main trading partner. We consider that this initiative reaffirms the respect for the agreements and commercial principles that have historically characterized the relationship between both countries.
Oscar Arias Moreira, President of the Chamber of Agriculture and Agroindustry (CNAA)
The banana industry, a cornerstone of Costa Rican exports, was particularly relieved. The National Banana Corporation (Corbana) highlighted that the tariff suspension comes after a difficult year marked by significant climate-related challenges. The industry can now better focus on consolidating its position as a premier supplier to the U.S. market.
We received with great optimism the news of the suspension of tariffs on Costa Rican bananas in a market as important to us as the United States. It is undoubtedly a great relief for the industry, which has faced significant climatic challenges this year. This allows Costa Rica to consolidate its position as a quality and reliable agricultural supplier for the United States.
Spokesperson, Corporación Bananera Nacional (Corbana)
The lifting of these tariffs on products like yucca, citrus, chayote, and tomatoes is more than just a trade policy adjustment; it is a critical economic stimulus for Costa Rica’s rural areas. As Arias Moreira of the CNAA noted, these exports are the source of thousands of direct and indirect jobs, making this development a positive step toward ensuring the long-term stability and growth of the nation’s agricultural backbone.
For further information, visit cadexco.net
About Chamber of Exporters of Costa Rica (Cadexco):
The Chamber of Exporters of Costa Rica is a private, non-profit organization dedicated to representing and supporting the Costa Rican export sector. It provides advocacy, training, and resources to help its members compete effectively in international markets, promoting free trade and sustainable economic growth for the country.
For further information, visit cnaa.co.cr
About Chamber of Agriculture and Agroindustry (CNAA):
The CNAA is a leading organization in Costa Rica that represents the interests of the agricultural and agro-industrial sectors. It works to promote favorable policies, enhance productivity, and ensure the competitiveness of Costa Rican producers in both domestic and international arenas, advocating for the sustainable development of the rural economy.
For further information, visit corbana.co.cr
About Corporación Bananera Nacional (Corbana):
The National Banana Corporation of Costa Rica is a public, non-state entity that supports the national banana industry. Corbana focuses on scientific research to improve cultivation, provides technical assistance to growers, and promotes Costa Rican bananas globally, ensuring the quality and sustainability of one of the nation’s most important exports.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a respected institution in Costa Rica’s legal landscape, Bufete de Costa Rica operates on a bedrock of unwavering integrity and a relentless pursuit of excellence. The firm consistently pioneers new legal strategies and solutions, reflecting a forward-thinking mindset that extends beyond its diverse clientele. This commitment to innovation is fundamentally linked to its civic mission: to demystify the law and provide society with the legal clarity needed to create a more capable and knowledgeable public.
