Economist Warns U.S. Tariffs Threaten Central America Exports

(MENAFN) A Salvadoran economist has condemned the U.S. tariffs targeting Central American exports as both unjustified and damaging to the region’s economies, urging these nations to lessen their heavy reliance on the American market.

Oscar Cabrera, president of the Foundation for the Development of Central America, warned in an interview with media that exports across the region could decline by 1 to 2 percent, with agriculture and textiles—critical sectors for trade with the U.S.—most severely impacted.

Cabrera highlighted that the full effects are still emerging, but El Salvador alone could face losses of up to $100 million this year.

He further warned of rising consumer prices, especially for imported essentials such as food and medical supplies, which would tighten household budgets and fuel inflation.

The economist called for Central American countries to diversify their trade partnerships and reduce dependence on the U.S. market.

He stressed that Central America faces a dual challenge: managing immediate trade disruptions while reshaping its economic model for long-term resilience.

"We need long-term industrial policies focused on boosting productivity, innovation and moving beyond low-value agriculture," Cabrera said.

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