Puerto Rico Paid $919.7 Million in Tariffs in 2025 as Government Negotiates Relief for Small Businesses

Puerto Rico paid $919.7 million in tariffs during 2025, the highest figure recorded between 2010 and 2026, and the hit is already showing up in construction costs, manufacturing costs, and store shelves across the island ¹. The figure, published by the Puerto Rico Statistics Institute on September 6, confirms what the Planning Board (JP) reported just three days later in its August Monthly Economic Report: the federal tariff war is raising the cost of essential inputs the island imports to build and manufacture goods ².

According to the Statistics Institute, the total tariffs paid in 2025 represent an increase of $683,092,358 over the $236,641,688 paid in 2024, a jump of 288.66% in a single year ¹. The average effective tariff rate rose from 1.17% to 4.81%, a 3.64 percentage point increase ¹. Agriculture was hit hardest: the effective rate on agricultural products (NAICS classification 111) spiked 584%, from 1.24% in 2024 to 7.24% in 2025 ¹. China led as the country generating the most tariffs, with $828.6 million in imports producing $275.2 million in tariffs paid ¹.

The Planning Board confirmed that the 25% tariff on steel and aluminum was the most decisive factor for construction, directly raising the sector's production costs, while manufacturing, which relies heavily on imported inputs, also took a hit ². The Statistics Institute projects the effective rate could drop to between 6.6% and 7.2% in 2026, following the February annulment of tariffs based on the federal IEEPA law, but that would still represent several times the 2024 level ¹.

Meanwhile, at the Capitol, the government this week revived negotiations to eliminate the inventory tax, a burden that hits small merchants hardest since they have no margin to absorb tariff costs ³⁵. Secretary of State Norma Burgos Andújar confirmed on September 10 that she is in active talks with Senate President Thomas Rivera Schatz on how to structure the elimination, possibly phased in over one, two, or three years rather than all at once ³. Senate Project 865, filed by Senator José A. Santiago Rivera, proposes exempting merchants with annual gross sales up to $5 million from the inventory tax, which legislative estimates say would cover roughly 90% of Puerto Rican commerce ⁴. The measure remains pending certification of fiscal feasibility from the Fiscal Oversight Board and a report from the Legislative Budget Office, and municipalities, which depend on the inventory tax as a revenue source through CRIM, need a funding replacement mechanism ⁴.

What This Means for You

If you own a small or medium-sized business in Puerto Rico, especially one that imports construction materials, manufacturing parts, or retail merchandise, you are likely already paying more for your inventory, and that cost almost always gets passed on to the final consumer ²⁵. If you work in construction or a trade that depends on steel, aluminum, or imported materials, material prices have risen and will likely stay elevated at least until the projected 2026 tariff rate decline materializes ¹². And if you're a consumer, the tariff increase has already translated into price pressure on food, materials, and manufactured goods that depend on imports ¹.

How to Act / Checklist

1. If you run a business with annual gross sales up to $5 million, track the status of Senate Project 865 at senado.pr.gov; if passed, you could qualify for the inventory tax exemption ⁴.
2. Talk to your CPA or accountant about how the current inventory tax is affecting your margins before the fiscal year ends, while the exemption remains under negotiation ³⁴.
3. If you buy imported materials (steel, aluminum, construction inputs), compare local suppliers or domestic manufacturing alternatives; the Statistics Institute notes that relocating manufacturing to the island is an opportunity now under consideration ¹.
4. Follow Planning Board announcements (jp.pr.gov) for the next Monthly Economic Report, expected in early October with September data ².
5. If you represent a trade association or chamber of commerce, you can request to testify at the Senate Municipal Affairs Committee's public hearings on PS 865 ⁴.

What's Next

Secretary Burgos indicated the inventory tax elimination could be folded into the broader tax reform package the Legislature is evaluating, though she acknowledged disagreement among lawmakers over whether the two should move together or separately ³. PS 865 remains pending certification from the Fiscal Oversight Board and identification of funding sources so municipalities don't lose CRIM revenue ⁴. On the federal front, the Statistics Institute projects the effective tariff rate could fall to between 6.6% and 7.2% in 2026 following the February annulment of IEEPA-based tariffs, though that depends on whether new sector-specific tariffs on steel, aluminum, or other key inputs for the island are activated ¹².

Sources

¹ NOTICEL, "Esto pagó Puerto Rico en aranceles en 2025," September 6, 2026 — https://noticel.com/en/noticias/20260906/esto-pago-puerto-rico-en-aranceles-en-2025/ ² El Nuevo Día, "Puerto Rico sintió el efecto de la guerra arancelaria, según la Junta de Planificación," September 9, 2026 — https://www.elnuevodia.com/negocios/economia/notas/puerto-rico-sintio-el-efecto-de-la-guerra-arancelaria-segun-la-junta-de-planificacion/ ³ Metro Puerto Rico, "Regresa a la mesa eliminación del Impuesto al Inventario," September 10, 2026 — https://www.metro.pr/negocios/2026/09/10/regresa-a-la-mesa-eliminacion-del-impuesto-al-inventario ⁴ Senado de Puerto Rico, "Comisión evalúa medida para eximir del impuesto al inventario a PyMEs" — https://www.senado.pr.gov/comisin-evala-medida-para-eximir-del-impuesto-al-inventario-a-pymes ⁵ El Vocero, "Los aranceles asfixian a pequeñas y medianas empresas en Puerto Rico" — https://www.elvocero.com/economia/httpswwwelvocerocomeconomiaaranceles-asfixian-a-las-pymes-en-puerto-ricoarticle3a94c7aa-b33f-4902-a2c4-79f38abdea6fhtml/article_3a94c7aa-b33f-4902-a2c4-79f38abdea6f.html