The two nations agreed to a Framework for an Agreement on Reciprocal Trade in November last year.
El Salvador is part of the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR) region, which operates as an integrated co-production network linked to the US textile supply chain.
According to NCTO president and CEO Kim Glas, this network generated $11.3bn in two-way trade in 2024 and supported more than 470,000 workers in the US domestic textile sector.
Kim Glas said: “NCTO and our industry greatly appreciate the administration’s actions on qualified textile and apparel goods for El Salvador under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). These steps will help fortify a critical export market for the US textile industry and our workforce.
“We sincerely thank President Trump, US Trade Representative Ambassador Jamieson Greer, and the administration for finalising this important reciprocal trade agreement. El Salvador is part of the CAFTA-DR region that forms a vital co-production chain with the American textile supply chain.”
US Trade Representative Jamieson Greer and El Salvador’s Minister of Economy, María Luisa Hayem, signed the US–El Salvador Agreement on Reciprocal Trade on 29 January 2026.
Under the agreement, the US will:
- Remove reciprocal tariffs on certain qualifying goods from El Salvador that the US cannot grow, mine, or otherwise produce in adequate quantities.
- Eliminate reciprocal tariffs and extend preferential treatment to select products, especially textiles and apparel that qualify under CAFTA-DR.
- Cap reciprocal tariffs on all other imports from El Salvador at a maximum rate of 10%.
The agreement is scheduled to take effect five days after both countries notify each other in writing that they have completed their respective legal procedures, or on another date they jointly choose.
The timing for when the tariff adjustments will be implemented has not been specified.
Glas continued: “Today’s action will reinforce the strength of the US textile industry. The US–Western Hemisphere supply chain is a strategic bulwark against China and other Asian competitors. We welcome the opportunity to work with the Trump administration to further fortify this vital region and strongly appreciate this important announcement.”
