U.S. tariffs targeting Central American exports are unjustified and harmful to regional economies, a Salvadoran economist has said, urging the Central American nations to reduce dependence on the U.S. market.
Across the region, exports may fall 1-2 percent, especially in agriculture and textiles — key sectors for U.S.-bound trade, warned Oscar Cabrera, president of the Foundation for the Development of Central America, in an interview with Xinhua.
As the impact is still unfolding, Cabrera said that El Salvador alone could lose up to 100 million U.S. dollars this year.
He also predicted higher consumer prices, particularly for imported goods like food and medical supplies, which would strain household budgets and drive up inflation.
Cabrera urged Central American nations to diversify trade and reduce their reliance on the U.S. market.
For Central America, he added, the challenge is twofold: responding to immediate trade shocks and reorienting its economic model for the future.
“We need long-term industrial policies focused on boosting productivity, innovation and moving beyond low-value agriculture,” the expert noted. (https://english.news.cn/northamerica/20250630/211870e86452478c919dfd3dd99189da/c.html)
