Nearshoring and Costa Rican Exports: Opportunities and Risks After New U.S. Tariffs

Costa Rica faces an important challenge for its export industry. Costa Rican chambers of commerce and free zones are not happy with the latest levies established by the North American government. However, experts at Deloitte see both challenges and opportunities: Costa Rica will benefit from “playing on a level field”, but must undergo a faster productive transformation.

“Tariffs won’t wipe out Costa Rica’s competitiveness…but they will change it.” —Deloitte

Costa Rican exports face headwinds and tailwinds in 2026.

Costa Rica’s Cost to Export Will Go Up

The United States is Costa Rica’s leading customer. The latter country’s production of medical equipment, electronic components, and gourmet food & beverages, especially, will be affected by unprecedented tariffs. Here are some areas that will be affected.

Margins

Exporters must either eat the tariffs to maintain prices or pass them on to US consumers. Both scenarios could lead to lower demand, hitting price-sensitive products especially hard.

Supply Chains

Supply chains that have import/export events multiple times during their process will pay more for logistics and customs costs. This makes planning ahead for 2026 difficult, since just-in-time manufacturing requires fixed margins.

Local Businesses vs Multinationals

Multinational corporations with facilities in Costa Rican free trade zones have more capital reserved to absorb tariffs. Local small- and medium-sized exporters will be disproportionately affected.

“In the short term, these tariffs can devastate margins for smaller businesses.” – Trade Specialist

Costa Rica Will Finally Join the Rest of the World

Analysts at Deloitte seem to counterbalance the growing pains by stating that many countries were given unfair exemptions. By taxing products that traditionally enter under preferences, the United States has leveled the playing field to include more developed and non-developed countries.

How will Costa Rica remain competitive if everyone is on the same playing field? Here are three strengths to keep an eye on:

1. Human Capital

Costa Rica has one of the most educated workforces in Latin America. Its workforce is skilled, reliable, and bilingual. Industries that require higher technical knowledge will have the upper hand: medical devices, high-end electronics, and technical support services.

2. Sustainability

Costa Rica can also tout “green” exports. As American consumers are willing to pay premiums for low-carbon-footprint goods, Costa Rica can use this to its advantage.

3. Nearshoring

Locally produced goods do have another huge benefit: proximity. United States companies are looking to limit reliance on Asian suppliers. Nearshoring and Costa Rican exports can provide reduced risk:

• Lower freight costs
• Reduced geopolitical exposure
• Higher environmental, social and corporate governance standards (ESG)
• Nearshoring and Costa Rican exports still provide a huge advantage over Asia.

What Can Costa Rica Do About US Tariffs?

Deloitte recently shared its suggestions for mitigating the tariffs. Costa Rica must improve domestic productivity by:

• Lean manufacturing
• Digitization
• Robust adoption of Industry 4.0 methodologies

Here are some ways companies can do this:

• Automation
• AI-powered supply chain management
• Digitally integrated customs documentation
• Diversify market research

The US won’t be leaving trade agreements with Europe or Asia. By finding alternative partners for exports, Costa Rica can decrease its reliance on US decisions.

Further integrate into CAFTA

DR-CAFTA (The Dominican Republic-Central America Free Trade Agreement) was signed in 2018 to promote trade between member countries. Strengthening commercial relations within Latin America and lobbying for key Costa Rican exports will help “future-proof” the country’s products from changes in US customs laws.

Beef up our Commercial Diplomacy

“The future of competitiveness in Costa Rica is tied to sales diplomacy.” – Deloitte

The reality is that Costa Rica must stand firm against lobbyists to ensure that its products remain “relevant” at US ports of entry. Both legal relevance and technical exemptions can prolong how long certain exports are affected.

Ready for “Round 2″?

• Challenges for Costa Rica:
• Labor & Energy Costs
• Costa Rica must continue to rein in operating costs if we want to maintain current margins.
• Logistics
• Traffic congestion, port congestion, and crumbling infrastructure harm Costa Rica’s competitive export brand.
• Business Intelligence

Lack of data when researching alternative markets puts Costa Rica at a disadvantage when pursuing new business opportunities.

Costa Rica Still Has a Lot Going for It

Moving forward, Costa Rica will always have a comparative disadvantage in tariffs. But that doesn’t mean all hope is lost. The tropical nation has proven itself capable of weathering storms and rising to higher-value industries before.

It’s stable. It’s democratic. Investors know that their investments are safe.

Free Zones Are Centers of Excellence

What were once stand-alone factories are now centers of excellence for advanced manufacturing, R&D, and shared services.

Connectivity

Costa Rica’s ports are some of the most advanced in Latin America. Better road infrastructure and digital investment will only strengthen the nation’s position for Nearshoring and Costa Rican exports.

Conclusion

Costa Rica must leverage every tool in its toolbox if it wants to stay competitive under the 15% tariff. Focusing on efficiency and smart investments will help the country “weather the storm” and position itself for higher-value additions in the future.