Governor, economic officials, industrial leaders discuss how to deal with tariffs

Gov. Jenniffer González Colón

By The Star Staff

Gov. Jenniffer González Colón held a meeting Monday with representatives from various sectors of private industry and members of her economic cabinet to discuss the implications of recent changes in federal tariffs.

The meeting focused on identifying strategies to enhance local economic development in response to the changes. On April 2, a day he called “Liberation Day,” President Donald Trump announced a minimum 10% tariff on all U.S. imports, effective April 5, and higher tariffs on imports from 57 countries.

During Monday’s session, the governor underscored the need to bolster local competitiveness and support manufacturing businesses facing challenges linked to the new tariffs. The goal, she said, is to convert those obstacles into opportunities for investment and job creation.

“We met with representatives of the main industries and business associations affected by the recent changes in federal tariffs to share the strategies we are considering and receive their recommendations,” González Colón said at a press conference.

Economic Development and Commerce Sebastián Negrón Reichard emphasized the importance of comprehending the difficulties entrepreneurs encounter due to rising costs, disruptions in supply chains, and issues related to trade competitiveness.

The meeting included industry leaders from various fields such as manufacturing, distribution, trade, construction, agriculture, tourism, banking, telecommunications, and food. Notable executives from companies such as Walmart, AbbVie, Eli Lilly, and AirMaster participated in the discussions.

Various proposals were explored to protect existing jobs and maintain economic activity, while also enhancing the competitive edge of local businesses in light of the evolving global trade landscape.

González Colón acknowledged the uncertainty created by the fluctuating tariff percentages proposed by Trump, particularly regarding their potential impact on the auto sales sector.

“Some of these tariffs have come to nothing. Others are increased, then increased again the next day, and on the third day they are eliminated,” the governor noted. “And, although there is a moratorium on some of them, the reality is that all of this has an impact on Puerto Rico.”

A newly released study shows that the island automotive industry is expected to be one of the most affected sectors, potentially facing a negative impact of over $400 million.

“The second most impacted areas could be the agricultural industry and the electrical machinery industry,” González Colón added.

Among the various alternatives discussed, the governor said she would be reviewing regulations and administrative orders to potentially lower operating costs. She also indicated that the tariff cost for cars would be evaluated, noting that it has not been amended in more than 20 years.

As collaboration between the government and the private sector progresses, the governor said, a joint action plan will be developed to promote local economic development and explore new opportunities for growth.