Puerto Rico seeks international manufacturing firms to bolster economy
- Puerto Rico's government officials are attempting to attract manufacturers by offering exemptions from tariffs.
- The island is experiencing significant economic struggles, with bankruptcy proceedings and a reliance on federal funds for over half its budget.
- The push for manufacturing relocation offers a critical opportunity for economic relief but faces challenges including energy infrastructure and competition from other countries.
Puerto Rico, an unincorporated U.S. territory, is actively pursuing international companies to relocate their manufacturing plants to the island as a strategic response to ongoing trade tensions exacerbated by a global tariff war. Since government officials have recognized the potential for companies to benefit from tariff exemptions in Puerto Rico, they are seeking to capitalize on this opportunity to stimulate the island’s fragile economy, which has been significantly weakened due to historic bankruptcy and elevated public debt. Currently, over half of Puerto Rico's budget is funded by federal aid, which is expected to face reductions under the administration of U.S. President Donald Trump. Governor Jenniffer González acknowledges that while tariffs present a contentious issue, they also provide Puerto Rico with unique prospects to attract new business investments.