Kathmandu. Washington: Us tariffs on Central American exports are not only unfair but also pose a serious challenge to the regional economy, a prominent economist has warned.
President of the Foundation for the Development of Central America. Oscar Cabrera said the move could adversely impact key export sectors such as agriculture and textiles.
As a result, exports of the entire sector are likely to fall by about one-two percent. He said El Salvador alone could suffer about $100 million in economic losses this year.
Besides, the prices of import-dependent food, medicines and other essential commodities are likely to rise, he said, adding that more economic pressure could be created in the daily life of the common people.
This indicates that inflation may also rise. Dr. Cabrera urged Central American countries to reduce their dependence on the U.S. market, seek alternative trade partners, and embrace the path of economic diversification through the formulation of long-term industrial policies. “We need to focus on building industrial infrastructure that creates productivity, innovation and high value in the long term while addressing short-term business impacts,” he said.
After donald trump’s victory in the us presidential election, he has been doing various tests. Trump, who went to the election with the main slogan of ‘Make America Great Again’, is still carrying that slogan forward.
President Trump has declared a trade war with most countries of the world. He is setting the tax rate so that only america can make a profit in trade.
But it is increasing price rise and inequality within the United States. Like other countries of the world, it is likely to affect the Central American economy.
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