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Honduras's garment and assembly industry will lose an estimated $500 million in exports by year-end as a 10% decline reflects structural competitiveness challenges including high electricity costs, labor expenses, and shifts in global markets, the regional manager of the Honduran Maquiladora Association said.

The maquila industry generates about 130,000 jobs, contributes 45–50% of Honduras's gross exports, and projects $5.5 billion in shipments for 2026, though sector leaders say stronger investment climate and security are needed to sustain growth.

Honduras's maquiladora sector lost roughly 40,000 jobs in 2025 as companies closed and relocated, even as the government announces a potential 4,000-job textile plant and says a US tariff on Honduran goods is straining competitiveness.

The head of Honduras's apparel manufacturers association is calling on the government to negotiate zero tariffs with the United States for agricultural goods and auto parts, matching Mexico's treatment, to boost competitiveness as the Trump administration considers new trade measures.