The Salvadoran export sector is closely monitoring the potential increase of U.S. import tariffs, which could significantly impact local businesses. The United States, being El Salvador’s main buyer of local products and supplier of raw materials, plays a pivotal role in the country’s economy.
Silvia Cuéllar, President of the Corporation of Exporters of El Salvador (Coexport), addressed the issue during an interview on Telecorporación Salvadoreña (TCS). Cuéllar warned that a possible 25% tariff hike on imports from Mexico and Canada would reverberate globally due to interconnected trade chains. “An increase in U.S. import tariffs will raise costs for Salvadoran entrepreneurs, especially since the U.S. is our primary market,” she noted.
The tariff discussions revive concerns stemming from former President Donald Trump’s policies, which threatened higher tariffs to curb migration and enforce fair trade practices, raising fears of a potential global trade war that could affect import-dependent economies like El Salvador.
Despite the challenges, Cuéllar believes El Salvador could benefit if the tariff increases materialize. She highlighted that companies currently operating in Mexico may consider relocating to El Salvador or other countries in the region to maintain market access. “We can capture a percentage of that business. This is an opportunity,” Cuéllar emphasized.
Adding to the region’s economic buzz, Mexican billionaire Carlos Slim recently visited El Salvador, accompanied by nearly 60 Mexican entrepreneurs in what appears to be an exploratory investment mission.
El Salvador’s export sector concluded 2024 with a 0.8% decline, totaling over $6.44 billion in goods shipments. However, local producers remain hopeful for a recovery in 2025 by diversifying markets beyond the region and the United States.