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President Luis Abinader of the Dominican Republic has suggested raising salaries by 25% in free trade zones and by 30% in the tourism industry. This is part of a bigger plan to rely less on foreign workers and give more jobs to Dominicans.
The goal is to stop irregular migration, mostly if not entirely from Haitian workers, from undercutting Dominican workers, especially in areas like tourism and free trade zones where many jobs are being taken. Abinader wants to make regular, good-paying jobs more appealing to Dominicans.
These salary increases will be discussed during talks between the government, employers, and unions. The hope is that better pay will make local jobs more attractive and help keep the job market strong.
This plan is one of 15 steps the government is taking to handle illegal migration, improve job systems, and protect the country’s independence. Abinader says he is committed to making sure Dominicans can get safe and well-paid jobs.
As of April 5, 2025, the United States has imposed a 10% tariff on imports from the Dominican Republic.
The Dominican Republic is subject only to the baseline 10% tariff, which is lower compared to higher tariffs imposed on some other nations.
These tariffs may affect the competitiveness of Dominican exports like clothing in the U.S. market, potentially leading to decreased demand for certain products.
The American Chamber of Commerce of the Dominican Republic has expressed concern about the possible negative impacts on exports due to these tariffs.
With a double whammy of increased tariffs and increased wages the outlook for Dominican manufacturing of clothing may be clouded. Several global brands have established manufacturing operations in the Dominican Republic, including Hanes underwear, Fruit of the Loom, Champion, Gap, and Old Navy.
Other Dominican exports include medical machinery such as X-ray machines, cigars, and gold. Gold is exempt from US tariffs.
Sources: Dominican Today, Listin Diario, worldstopexports.com
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