Economist Warns U.S. Tariff Policy Could Impact Dominican Economy

• Economist Jaime Aristy Escuder cautioned that the trade policies of former U.S. President Donald Trump could cause global economic instability and negatively impact the Dominican Republic.
• If the U.S. maintains a 25% tariff on Mexican goods, the Mexican peso could depreciate by up to 10%, making Mexico a more affordable destination and reducing the Dominican Republic’s tourism competitiveness.
• However, the trade war could create opportunities for the Dominican manufacturing sector. If the U.S. increases import costs from Mexico and China, American companies might relocate production to the Dominican Republic, benefiting the free trade zones.
• Aristy Escuder explained that Trump’s policy aims to boost U.S. domestic trade but has sparked retaliatory measures from Mexico and Canada, escalating regional economic tensions.
• He warned that these policies could slow U.S. economic growth, affecting global markets. Given the potential risks, he urged the Dominican government to closely monitor trade developments to mitigate possible negative effects on the national economy.

(Source: Dominican Today)