QCOSTARICA — Diversifying the export sector with more markets and more products, and redoubling efforts to improve the country’s competitiveness through better roads, less red tape, and high-speed 5G internet, are some of the actions Costa Rica must implement to protect jobs and the export sector from the trade war launched by Donald Trump and the United States this week.
The imposition of tariffs on global trade by the United States has placed Costa Rica before a new economic challenge, as, from now on, Costa Rican products seeking to enter the U.S. market will have to pay a 10% tax.
This is a major challenge for the national export sector, which has the United States as its main trading partner, currently selling 47% of its products there.
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Costa Rica’s main exports to the U.S. include medical devices, bananas, pineapples, coffee, and electronics. Other Notable Exports: integrated circuits, orthopedic appliances, tropical fruits, syrups and concentrates for soft drinks.
“Costa Rica is a small, open economy that has relied on international trade as one of its main drivers of development. In this context, we need to continue making progress in diversifying our external sector: more markets, more products, and more companies participating in international trade. Only in this way can we reduce our vulnerability and ensure that trade continues to be a source of growth, employment, and well-being for all Costa Ricans,” said Juan Carlos Hidalgo, presidential candidate for the Partido Unidad Social Cristiana (PUSC).
For his part, Rodney Salazar, representative of the Chamber of Foreign Trade (CRECEX), agrees on the importance of this approach, noting that the country should take advantage of current trade agreements with the European Union, Asia, and Latin America to expand its commercial opportunities.
Salazar also recommends remaining calm and avoiding hasty decisions that could affect supply chains and current trade agreements.
Furthermore, the country must invest in training human talent, modernize its trade infrastructure—including highways, airports, and a new port on the Pacific—and simplify procedures to facilitate the business climate.
Confront the United States?
Using all available international diplomatic and legal tools, the Costa Rican government, led by Rodrigo Chaves, should confront the United States to prevent the imposition of 10% tariffs on all Costa Rican products, according to Antonio Ortega, leader of the Frente Amplio (FA) legislative faction.
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For the legislator, Donald Trump’s decision “is yet another attack by the Trump administration, from that authoritarian far-right that disrespects multilateralism,” and he denounced the impact it will have on national producers.
“It’s part of their absolute disrespect for the international community and the rules of international law. We call on the president to defend national sovereignty without half measures against these behaviors that seek to turn us into a backyard,” Ortega said, emphasizing that these unilateral actions by the United States seek to impose unequal conditions on countries like Costa Rica.
On this issue, economic analyst Daniel Suchar suggests that the impact of these tariffs may not be as severe as it initially appears and therefore called for calm.
The analyst points out that it will be American citizens who will end up paying higher prices for imported products, which could lead to a reevaluation of the measures by the Trump administration.
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He also believes that the US domestic market could seek ways to supply affected products, which could create opportunities for other countries.
Finally, Otto Guevara, a former legislator and perennial presidential candidate, asserted that the Frente Amplio’s stance would only generate poverty in Costa Rica.
Uncertainty generated by Donald Trump’s tariffs could affect growth and investment in Costa Rica. The theory is clear that protectionist measures are harmful to global trade, according to analysts.
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