Honduras seeks U.S. tariff elimination to boost exports

Honduras is advocating for the United States to remove tariffs on its agricultural products and harnesses, seeking parity with Mexico's zero-tariff access. Jesús Canahuati, a leader in the maquiladora industry, emphasized that such a move would significantly enhance Honduras's competitiveness against Asian manufacturers and attract further investment.

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Honduras must seek that the United States equates it with Mexico in terms of having zero tariffs for agricultural products and harnesses, while at the textile level Asian nations have a 20% tariff so that the industry is competitive and more investments can be attracted.

Canahuati highlighted that while Honduras currently faces a 10% tariff, and up to 25% for harnesses, achieving zero tariffs would level the playing field. He expressed optimism that the U.S. Trade Representative's office will announce favorable tariff adjustments, especially as a 90-day period of tariffs imposed by the Trump administration on many countries is set to expire.

"I have an optimistic feeling that we will end up in better conditions than our Asian competitors," Canahuati stated, noting that his business group and others are expanding operations. He pointed out that U.S. imports from Central American countries and Mexico constitute only 10% of textiles and apparel, with the remaining 90% coming from nations like Vietnam, Pakistan, and Bangladesh, which often have lower labor costs and longer workweeks.

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I have an optimistic feeling that we will end up in better conditions than our Asian competitors.

Beyond tariffs, Canahuati mentioned that Honduras benefits from not being associated with forced labor, making it an attractive partner for U.S. clients. He also noted the current global uncertainty and rising shipping costs due to the Middle East conflict, which have increased freight expenses from $2,000 to $10,000.

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That difference will be favorable, it will give us more competitiveness to attract more investments.