**San Juan**: Rafael Vélez Domínguez, President of the Manufacturers Association of Puerto Rico, warns that new tariffs could threaten local imports but also presents an opportunity to attract foreign investment, urging manufacturers to diversify supply chains to mitigate future risks.
Rafael Vélez Domínguez, the President of the Manufacturers Association of Puerto Rico, has articulated concerns regarding the new tariffs imposed by the Trump administration, which he deems a threat to all imports to the U.S. territory. Speaking to The San Juan Daily Star, Vélez Domínguez highlighted that these tariffs could have far-reaching implications for the local economy, particularly for manufacturers dependent on imported raw materials.
Vélez Domínguez noted that while the tariffs present challenges, they also offer a potential opportunity for Puerto Rico to attract foreign investment. He stated, “I see these tariffs as a tool the Trump administration is using to negotiate various issues, such as discussions with Canada regarding fentanyl and with Mexico concerning immigration.” He characterised the tariffs as a short-term measure that might be subject to changes, leading Puerto Rico to exercise caution in its response.
He emphasised the necessity for importers, especially manufacturers, to diversify their supply chains to mitigate risks associated with future tariff fluctuations. “Today it’s Mexico facing tariffs, but tomorrow it could be Colombia, the Dominican Republic, or others,” he remarked, stressing the importance of proactive strategies in business operations.
Vélez Domínguez further asserted that the current situation could also be reframed as a significant opportunity for Puerto Rico. He argued that the territory could position itself as a more appealing business destination compared to regions facing tariff difficulties. “We can persuade companies that investing and establishing operations in Puerto Rico is a better option than in Mexico, Colombia, Panama, or the Dominican Republic, especially since we aren’t faced with the same tariff threats,” he explained.
In conclusion, he expressed optimism about leveraging the existing conditions to create a competitive advantage for Puerto Rico in the global market, thereby making it a more attractive locale for companies looking to invest.
Source: Noah Wire Services
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