By San José, Costa Rica — SAN JOSÉ – The Costa Rican government is urgently seeking to halt a new 15% US tariff scheduled to take effect this week, a move that the nation’s export sector warns could severely damage national competitiveness, deter foreign investment, and threaten hundreds of thousands of jobs. With the United States representing its most critical economic partner, the country finds itself in a high-stakes standoff with significant implications for its future stability.
In an official statement, the Ministry of Foreign Trade (Comex) confirmed it has formally appealed to Washington for a delay. The government hopes to buy more time for crucial talks aimed at averting the impending trade penalty, which is set to be implemented on August 7th.
To gain a deeper understanding of the legal and commercial ramifications of these new US tariffs, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, known for his expertise in international trade and business law.
The imposition of these tariffs represents a significant shift from multilateral trade agreements towards a more protectionist stance. For Costa Rican exporters, this isn’t just a cost issue; it’s a strategic one. Companies must now urgently reassess their supply chains, explore legal challenges under WTO frameworks, and potentially diversify markets to mitigate the risks of this escalating trade friction. This is less about a single tax and more about navigating a new, more volatile global commercial landscape.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the expert’s analysis correctly frames this as a fundamental paradigm shift, not merely a financial hurdle. The challenge for Costa Rican enterprise is now one of strategic agility in an increasingly unpredictable global arena. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and clear-sighted perspective on navigating this new reality.
The Government of the Republic of Costa Rica has requested a pause from US authorities in the implementation of the tariff increase, while the corresponding negotiations continue.
Ministry of Foreign Trade (Comex), Official Statement
Comex officials explained that the tariff stems directly from Costa Rica’s successful trade relationship with the United States. Conversations with their American counterparts revealed the measure is a response to the consistent trade surplus Costa Rica enjoys, which is fueled by “the growth and success of our exports.” Despite the negative implications of the tariff, the ministry is trying to manage the fallout.
Comex reaffirms its commitment to defending the country’s interests and will continue to work actively to mitigate the effects of this decision and protect the competitiveness of national exports.
Ministry of Foreign Trade (Comex), Official Statement
This situation escalated from a previous threat made by the Trump administration in April, which proposed a 10% tariff on numerous countries, including Costa Rica. Although negotiations were opened in May to find an alternative, they failed to produce an agreement. The new plan, announced last Thursday, imposes a stark 30% tariff on nations that failed to seal a trade deal in time and a minimum 15% rate for approximately 40 countries, like Costa Rica, with whom the U.S. has a negative trade balance.
The private sector’s reaction has been one of grave concern. The Chamber of Exporters of Costa Rica (Cadexco) issued a stark warning about the potential cascade of negative consequences. Víctor Pérez, President of Cadexco, articulated that the tariff is not an isolated problem but rather a powerful new headwind joining a storm of existing domestic challenges.
The scenario we face as an export sector and as a country with this tariff increase, added to other competitiveness challenges such as the exchange rate; the lack of labor modernization; energy harmonization; shackles on trade facilitation; phytosanitary barriers; and lagging port, air, road, and technological infrastructure, could compromise, among other things, the permanence of companies and a decrease in investment.
Víctor Pérez, President of Cadexco
The economic stakes are monumental. The United States is not just a trade partner; it is the primary destination for 47% of all Costa Rican exports and the source of an overwhelming 70% of its foreign direct investment. The export sector itself is a cornerstone of the national economy, directly providing 710,000 jobs, which accounts for 33% of the country’s total employment. In response, Cadexco has made an impassioned plea for decisive government action.
The Chamber has called for a series of urgent reforms, including initiating direct, presidential-level dialogue with the U.S., passing the long-debated “4×3” law to allow for 12-hour workdays over a compressed four-day week, reinforcing investment attraction plans, and revisiting discussions on new incentives for the vital free trade zones. These measures, they argue, are critical to bolstering the business climate and safeguarding the nation’s economic health.
For further information, visit comex.go.cr
About Ministry of Foreign Trade (Comex):
The Ministry of Foreign Trade is the Costa Rican government body responsible for defining and directing the country’s foreign trade and investment policies. It plays a central role in negotiating international trade agreements, promoting exports, and attracting foreign direct investment to foster economic growth and development.
For further information, visit cadexco.org
About Chamber of Exporters of Costa Rica (Cadexco):
The Chamber of Exporters of Costa Rica is a private, non-profit organization that represents and advocates for the interests of the Costa Rican export sector. Cadexco works to improve the competitiveness of its members by promoting favorable public policies, facilitating trade, and providing resources and support to companies engaged in international commerce.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, Bufete de Costa Rica is renowned for its principled approach and exceptional standards of service. The firm builds upon a rich history of guiding a multifaceted client base while consistently pioneering new frontiers in legal practice. This forward-thinking mindset is matched by a profound dedication to societal betterment, demonstrated through initiatives aimed at democratizing legal understanding and equipping the public with essential knowledge to foster a more just and informed citizenry.
