Port-au-Prince, Haiti / Georgetown, Guyana – October 23, 2025 – Caribbean leaders are sounding the alarm over a looming economic catastrophe for Haiti as a critical U.S. duty-free export agreement for Haitian-made apparel and textiles has expired, threatening to plunge the nation’s already fragile economy into deeper crisis. The Hemispheric Opportunity through Partnership Encouragement (HOPE) and Haiti Economic Lift Program (HELP) Acts, which have provided vital preferential access to the U.S. market for Haitian manufacturers, lapsed at the end of September 2025 without immediate renewal.
This expiration means that Haitian exporters now face significant tariff levies, with duties potentially ranging from 14% to 30%, in addition to a 10% reciprocal tariff that most nations encounter. This dramatic shift in trade terms severely undermines the competitiveness of Haitian goods, making them less attractive compared to products from Asian suppliers or other U.S. trading partners in the Caribbean and Central America.
The Lifeline of Haiti’s Apparel Industry
The HOPE and HELP Acts have been instrumental in supporting Haiti’s textile and apparel sector, which has long served as the backbone of its formal economy. For years, this sector has accounted for over 90% of Haiti’s merchandise exports to the United States. In 2018, the industry provided employment for approximately 62,000 people. While security concerns have led to a reduction in the workforce to around 26,000 to 30,000 in recent years, the sector remains a crucial source of jobs and livelihoods for tens of thousands of Haitians. The expiration of these trade preferences puts these jobs, and the stability they provide, at grave risk.
Economic Blow and Cascading Consequences
Caribbean leaders, through the Caribbean Community (CARICOM), have expressed grave concern over the potential economic fallout. In a recent statement, CARICOM Heads of Government emphasized that the preferential trade framework has been “vital to Haiti’s economic and social development” and has supported “mutually beneficial trade and economic linkages between United States and Haitian businesses”. They warned that the loss of this arrangement “negatively impacts business continuity, investment, and employment in Haiti and exacerbates the worsening economic and social situation”.
The implications extend beyond job losses. Without the duty-free access, U.S. fashion companies may reconsider or withdraw their sourcing from Haiti, leading to a sharp decline in exports and further damaging an economy already grappling with widespread gang violence, political instability, and a severe humanitarian crisis. U.S. textile and apparel imports from Haiti, which totaled $512.2 million in the year ending July 2025, are expected to plummet.
Urgent Appeals for Renewal
CARICOM leaders are urging the U.S. administration and Congress to take “urgent steps to move the legislation forward and restore the HOPE/HELP programmes”. The American Apparel and Footwear Association (AAFA) and the Association des Industries d’Haïti (ADIH) have also been actively lobbying for the immediate renewal of the acts, highlighting their importance for both Haitian workers and U.S. businesses seeking diversified sourcing options.
However, the path to renewal is fraught with uncertainty. Congressional gridlock and a recent U.S. government shutdown have complicated efforts to pass the necessary legislation. While many stakeholders, including the White House, reportedly support the renewal, the timeline for action remains unclear, with some anticipating a decision by December 19, 2025. The delay itself is already creating uncertainty, causing buyers to shift orders away from Haiti, even before the full impact of the tariffs is felt.
A Critical Juncture for Haiti
The expiration of the HOPE/HELP Acts marks a critical juncture for Haiti. As the nation struggles to recover from persistent security challenges and humanitarian crises, the loss of this vital trade preference threatens to dismantle one of its few stable economic pillars. The international news surrounding this development underscores the urgent need for decisive legislative action from the United States to support Haiti’s economic recovery and prevent further destabilization in the Caribbean region.