Haiti’s textile industry threatened by Trump’s tariffs

Haiti’s apparel industry, long hanging by a thread, may soon unravel completely following President Donald Trump’s April 2 announcement of a 10% tariff on all Caribbean imports. The move exacerbates Haiti’s struggling textile industry. 

For nearly two decades, garment manufacturers in Haiti have benefited from HOPE (Hemispheric Opportunity through Partnership Encouragement) and HELP (Haiti Economic Lift Program). The trade programs, which allow for duty-free access to markets in the United States, would be directly undermined by the new tariffs.

“One especially delicate case for the CARICOM group now is Haiti, where the social and economic fabric remains under strain from political uncertainty and armed groups disrupting daily life,” Sir Ronald Sanders, Antigua and Barbuda’s ambassador to the United States, wrote in an op-ed published April 3.

“Imposing further tariffs on Haiti’s exports under the current circumstances, risks inhibiting the very progress the country so urgently needs. Deterioration in Haiti’s economic circumstances will only increase the Haitian impetus to seek refuge in the U.S.”

In 2023, Haiti ranked 162nd globally in exports and 153rd in imports, underscoring its fragile position in the global economy. Its top exports, primarily apparel items like knit T-shirts and sweaters, brought in $844 million from the U.S. alone, making the country heavily dependent on American demand, according to figures from the Observatory of Economic Complexity (OEC).

At the same time, Haiti imported over $1.15 billion in goods from the U.S., including refined petroleum, rice, and even cotton fabrics for its garment sector, revealing a trade imbalance and Haiti’s deep reliance on trade with the U.S.

Expiring programs

HOPE and HELP are set to expire in September 2025. U.S. lawmakers introduced a bipartisan bill in February to extend the programs for another 10 years. 

Supporters say the programs are crucial not only for Haiti but for American manufacturers and cotton producers who benefit from nearshoring.

“Establishing long-term stability in Haiti requires a strong foundation for economic opportunity and growth,” said Congresswoman Sheila Cherfilus-McCormick, Co-chair of the House Haiti Caucus. 

“The HOPE/HELP trade preference program has played an integral role in this effort, strengthening the apparel sector and creating jobs throughout the country. We must reauthorize HOPE/HELP immediately in order to help the U.S. economy and reaffirm our commitment to Haiti’s security and prosperity.”

Some trade experts warn that without an extension of HOPE and HELP, Haiti could lose one of the last functioning sectors of its formal economy.

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“The apparel industry is the backbone of Haiti’s formal economy,” Maulik Radia, president of the Association des Industries d’Haïti (ADIH), said in a statement. “Without the immediate reauthorization of this program, Haiti will experience further job losses in the apparel sector.”

According to ADIH, Haiti has lost 40,000 jobs in the apparel industry, shrinking from a peak of 60,000 jobs to just over 20,000. The majority of the jobs in Haiti’s textile sector are in the north and east of Haiti, away from the violence and instability in Port-au-Prince and Haiti’s south.  

“While the new tariffs, announced by President Trump on April 3, will raise the cost of CARICOM products in the United States – and very likely reduce exports and revenues for already challenged Caribbean economies – American consumers will also feel the effects,” said Sanders.

”Increases in duty rates often translate to higher prices on store shelves. Thus, while Caribbean exporters lose potential income, U.S. buyers face higher costs.”

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