Ease of doing business
theboardiQ Tariffs Dashboard:
Powering Mutually Beneficial Global Trade.
Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.
Implications
The trade relationship between the US and Honduras is currently defined by the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), but this status has been complicated by the new, broad-based US tariffs implemented in 2025.
Here is the update on US tariffs, deals, and company impact regarding Honduras as of October 2025:
US Tariffs Update on Honduras
Area | Status (October 2025) | Key Details |
Reciprocal US Tariffs | 10% Implemented (Since April 2025) | Imports from Honduras are currently subject to a 10% tariff imposed under the International Emergency Economic Powers Act (IEEPA), which President Trump used to apply tariffs broadly on countries with a trade surplus. This is applied in addition to regular duties. |
CAFTA-DR Status | In Force (Trade Agreement) | Honduras is a member of CAFTA-DR, which historically means nearly all goods are duty-free to the US. However, the new IEEPA tariffs are being applied on top of or in place of existing trade agreement rates. |
Tariff on Steel/Aluminum | 25% or 50% (Implemented) | Honduras is subject to the general global tariffs on steel and aluminum products (now generally set at 50% for primary products, with an expanding list of derivative products at 25% or 50%). These tariffs override the CAFTA-DR duty-free status for these specific goods. |
De Minimis Exemption | Suspended (Since August 2025) | The $800 de minimis exemption that previously allowed low-value shipments to enter the US duty-free has been suspended for all countries. This means all shipments from Honduras, regardless of value, are now subject to the new tariffs and full customs clearance. |
Impact on Companies Importing from Honduras
The new tariff landscape and the suspension of the de minimis exemption create significant challenges for companies relying on the US-Honduras supply chain:
Increased Costs and Prices:
Importers of major Honduran goods like apparel, insulated wire, coffee, and fruit now face at least a 10% tariff (the IEEPA reciprocal rate) on top of the original low or zero CAFTA-DR rate.
The increased costs are often being passed on to US consumers through higher retail prices.
Supply Chain Disruption & Inventory Stockpiling:
Businesses have faced compliance uncertainty and rising costs, leading to decreased overall US import volumes and an earlier-than-usual stockpiling of goods to beat tariff deadlines.
Apparel/Textile Sector Impact:
Honduras is a major apparel supplier to the US. The textile and apparel sectors are disproportionately affected by the new tariffs, with analysis projecting significant price increases for clothing in the US market. The 10% reciprocal tariff significantly erodes the duty-free advantage under CAFTA-DR.
Logistics and Compliance:
The suspension of the de minimis rule has increased the administrative and logistical burden, as every small shipment now requires full customs clearance and duty calculation.
Investment Climate Uncertainty:
Some U.S. businesses have reported that Honduras's investment climate has deteriorated due to various internal political and regulatory issues, compounding the effect of the new US tariffs.
US Revised Tariffs
Country Tariffs
Balance of Trade
Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals
Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
US Imports Guide
United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.
Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |