Kathmandu: The newly imposed U.S. tariffs on Central American exports are being described as both unfair and economically damaging, with serious repercussions for the region’s key industries, according to a top economist.

Dr. Oscar Cabrera, President of the Foundation for the Development of Central America, warned that the tariffs could negatively impact major export sectors like agriculture and textiles, potentially causing an overall export decline of 1 to 2 percent across the region. He estimated that El Salvador alone could suffer economic losses of around $100 million this year as a result of the trade barriers.

In addition to the drop in exports, rising costs of imported essentials—including food, medicine, and daily-use goods—could further squeeze household budgets and accelerate inflation, Dr. Cabrera cautioned.

“This move increases economic pressure on ordinary citizens and undermines the stability of our export-driven economies,” he said.

Call for Economic Diversification and Reduced US Dependency
To mitigate long-term vulnerabilities, Dr. Cabrera urged Central American nations to diversify their economies and reduce overdependence on the U.S. market. He recommended the pursuit of alternative trade partnerships and the development of long-term industrial strategies.

“We need to focus on building an industrial structure that is productive, innovative, and generates high value, not just in response to short-term shocks but as a sustainable solution for economic independence,” he added.

His remarks come amid growing concern across Latin America over U.S. protectionist trade policies, which many analysts argue disproportionately affect developing economies.