The Business Commission of International Commercial Negotiations (CENCIT) and exporters continue to monitor the effects of new taxes to import the United States.
On average it is estimated that the 10% tariff increase It can represent around US $ 1.2 million daily to the value of Guatemalan exports, said Carla Caballeros, executive director of the Agro Chamber (Camagro).
Only in sectors such as banana export is estimated about US $ 400,000 per day, he added.
Asked about how much more time companies can continue absorbing these costs and how they are currently affecting them, the executive stated that the case of each exporter is different since it depends on the negotiation with their buyer or importer in the United States, the conditions of their contract and other factors, and that depends on how and who assumes 10% of the tariff.
The ability to continue absorbing that expense also depends on each company, since for all it is an additional load which affects margins and financial capacity to maintain or expand.
However, it considers that it will be more difficult for small and medium enterprises to operate with this additional load that adds to the high costs of operating in Guatemala due to the poor state of the roads, saturation in ports, among others.
Different reactions
Meanwhile, Alejandro Ceballos, vice president of the Association of Costumes and Textiles (Vestex), explained that the sector has found different reactions to the new tariff. Customers have asked exporters to assume the 10% load of the tariff, other buyers have assumed them and so it is expected that garments prices will increase in their country, and in other cases it is being assumed in a shared way between them, he explained.
Given the orders that were already underway, manufacturers and exporters are accepting the conditions not to lose what the entire order would represent, but in that sector there is not much room for maneuver and the load cannot be supported for a long time because it is the clients (importers to the United States) who establish prices, it was added.
The last week has been difficult, said the manager, because companies can endure a few weeks because they already have orders, but some are working with losses when adding that new position because there is not much margin in that industry, and uncertainty continues.
Raise political dialogue beyond commercial
Cencit has been working together with the Government, in coordination with the Ministry of Economy (Mineco) in search of solutions. In addition, he indicates that he has prepared with the team of technicians from all the cameras and ministry, the matrix of proposals that corresponds to each of the commercial barriers indicated in the USTR report.
It was also raised during the meeting with the President of the Republic, Bernardo Arévalo, the need to attend five points, Caballeros said.
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Among these, to raise the level of political dialogue and be beyond trade, which at the discretion of businessmen goes through direct management by the president before the White House and the State Department.
Secondly, that the president instructs all ministers who are in charge of concrete actions to facilitate the operations of the companies and solve the problems indicated as barriers to trade, that they solve them, but establishing specific deadlines, in addition to the fact that for this the resources from the current budget are assigned, the actions are prioritized and the execution and the deadlines that are established.
“Guatemala is the best ally that the United States can have in the region. That is why the solution is to raise the political level of the dialogue,” Knights added.
The Chamber of Commerce of Guatemala (CCG), said, that Government of Guatemala and the private sector recently addressed, strategies to negotiate with the United States the reduction or elimination of 10% of tariffs imposed on Guatemala products, and the agreement was reached to do so in two axes:
- One is the technical axis, which is led by the Mineco, and in close collaboration with the private sector, to find solutions to the problem manifested by the report of the US government of tariff barriers. For this, public-private technical tables were established, which began working since last Thursday, April 10, it was added.
- And the other is the diplomatic axis: led by the Ministry of Foreign Affairs, which has kept communication with the US commercial representative’s office open.
The solutions to the problems expressed by the United States government is one of the strongest negotiation factors, the Chamber added.
It is considered that it is important that short and medium term actions are implemented that facilitate trade, they add.
Indicating that actions include the simplification of procedures, the intensive use of electronic platforms, the efficiency in port operations and offices, improvements in processes and procedures, improvements in infrastructure and even changes in the legislation that guarantee the solution of the problem that affects importers and exporters, evidenced by the current crisis of tariffs.
Meetings between Mineco and Entrepreneurs conclude
Ministry of Economy (Mineco) did not respond directly about the request of the business sector to raise the level of dialogue beyond trade and directly participate by the Guatemalan president with the White House and the State Department.
However, the Mineco explained that the bilateral meetings between entrepreneurs and the ministry have been completed, according to the road map presented at the meeting by President Arévalo, on April 8 with the businessmen representing cameras, associations and union of the private sector.
He says that among the participating organizations El Cacif, Asazgua, Apib, Grepalma, Agexport, Acafé, Chamber of Industry, Chamber of Commerce, Chamber of Agro, Fundesa, Vestes, and the Guatemalan Chamber of Food and Drinks.
With these entities, each of the non -tariff barriers that could apply to their sector were addressed. In addition, bilateral meetings were had with vice ministers of the key ministries for this process (such as environment, agriculture, health), with the Superintendent and the mayors of customs and legal affairs of the SAT. Which perform a strategic role in the processes identified as non -tariff barriers.
Although Mineco indicated that the processes and interventions have already been identified to address the observations of the UST, and that as a result of these meetings “actions are being implemented with each of the actors to solve the observations to immediately address the barriers identified for Guatemala, and define the actions directed towards those processes that can be addressed in the short and medium term”, although it was requested to expand the information, Mineco said that by The moment would not provide details.
It follows the effect of uncertainty on exports of some products
The effect of uncertainty on exports of some products continued in February, but also include other factors.
The total exports of Guatemala to the whole world is US $ 2,500.3 million accumulated to February 2025, with a growth of 6.9% compared to the previous year, according to the data of the Bank of Guatemala (Banguat).
Despite the general positive results, within the 15 most exported products, eight report growth in amounts, but seven register falls.
The coffee has exported US $ 220.3 million, where the amount grew 80.1% more than the same period of the previous year, and the volume in 14.2%.
However, costume articles, with exports for US $ 218.1 million, reflect a drop of -10.7% in amount and similarly in garments. Sugar grew 89.7% and banana 4.1% and fresh fruits, dry or frozen, 7.5%. Meanwhile, a fall of -9.8%was reported in edible oils and fats; Cardamom with -48%; Pharmaceutical products of -11.4%.
Ceballos explained that in the costume and textile sector it is reflected is mainly the impact of the increase in the minimum wage, which increased 6% by 2025. Derived from this, it was detected that in January and February about 4,000 machines were taken out of operation, he added.
The director of Camagro said that some downward variations, such as the agricultural products mentioned are related to price, in addition to variations in contracts with some buyers from Europe.
Disadvantage with Mexico and cost of transport, other risks
One of the greatest current risks is that Guatemala is at a disadvantage with Mexico, since the products of that country continue to enter with zero tariffs under the free trade agreement that it has with the United States and Canada, Camagro insists. And to that the logistics costs in the country are added, he refers to, mentioning as an example that from the southern states of Méxic of the ship.
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Imports
The Chamber of Commerce states that, for the moment, an impact on imports from the United States has not been observed due to the increase in tariffs. It is added that this measure was unilateral and did not respect what was agreed in the DR-CAFTA Free Trade Agreement, which by the Government of Guatemala, this 19-year-old instrument continues to respect.
According to the Organization of Merchants, it is important to note that many goods produced in the United States use imported raw materials, as well as packaging material and other supplies, so the increase in tariffs imposed on about 180 countries will increase the prices of products that export and consequently, Guatemalan importers will have to pay more for those products to give these conditions.