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Thursday, March 6, 2025

Uncertainty Grips Costa Rica’s Agribusiness as U.S. Tariffs Loom

Costa Rica’s agribusiness sector braces for uncertainty as U.S. President Donald Trump threatens tariffs on foreign produce, effective April 2. In a recent message to U.S. farmers, Trump urged them to ramp up production for domestic markets, hinting at a policy shift that could disrupt Costa Rican exports. Details on targeted countries and products are expected soon, leaving Costa Rica on edge.

The Minister of Foreign Trade (COMEX), Manuel Tovar, urged caution. “So far, the United States has not taken concrete measures regarding specific tariffs on agricultural products. For now, we consider it prudent to avoid speculation and wait to issue a judgment on concrete decisions,” he said. Tovar emphasized that Costa Rica is closely tracking policies from partner countries while reinforcing its role in global supply chains. “We will continue to promote the values that distinguish Costa Rica, such as democratic stability, respect for the rule of law, and public freedoms, which represent a key advantage in global trade,” he added.

Rodney Salazar, President of the Costa Rican Chamber of Foreign Commerce (Crecex), said the organization is actively monitoring developments. He stressed the need for industries to track the implementation and evolution of these measures to assess their impact on Costa Rican exports to the U.S.—the nation’s top market—and make informed decisions.

The National Chamber of Agriculture and Agribusiness (CNAA) expressed hope that the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which ensures tariff-free access to the U.S. market, will hold firm. “We trust that CAFTA-DR provisions will be honored and that this measure does not affect the Costa Rican agro-export sector, whose main trading partner remains the United States,” said Vice President Ivannia Quesada.

Costa Rica’s Foreign Trade Promoter (PROCOMER) reported no immediate “warning signs” but is closely watching the situation to identify opportunities and challenges. PROCOMER noted that most U.S.-grown agricultural products, like grains, differ from Costa Rica’s exports, such as pineapples and bananas, reducing direct competition with the domestic industry.

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