Puerto Rico businesses must stay calm, strategic amid tariff uncertainty
Raúl Burgos urges local entrepreneurs to focus on facts, assess risks and strengthen operations in response to global trade shifts.
In recent days, President Trump’s announcement of sweeping new tariffs has sent shockwaves through global markets. Investors reacted with nervousness, sending major stock indices tumbling. Economists, trade experts, political analysts and even so-called “influencers” have flooded the media with interpretations — some insightful, others speculative.
For business owners in Puerto Rico, this moment of uncertainty feels all too familiar. Over the past decade, we have endured hurricanes, earthquakes, fiscal crises, a global pandemic and supply chain disruptions. Just as many entrepreneurs have started to regain their footing, global economic instability rears its head once again.
The natural response is concern. Tariffs, after all, can lead to price increases, supply chain bottlenecks and retaliatory trade policies from other nations. They ripple through the economy, affecting everything from raw material costs to consumer confidence. And in a territory like Puerto Rico, so dependent on imports for basic goods and materials, the impact of such global maneuvers can feel amplified.
But while concern is justified, panic is not. In times like these, clarity, calm and strategy must be the guiding principles for our business community. Here is what business leaders across the island should be doing in the face of today’s uncertainty:
We live in a digital age saturated with information and misinformation. From WhatsApp group messages to alarmist headlines on Facebook, Instagram and YouTube, it is easy to get swept up in the noise. But reactionary decisions based on fear, and driven by the opinions of self-appointed experts, are rarely the right ones.
Instead, stay grounded by relying on reputable sources such as the U.S. Department of Commerce, the Office of the U.S. Trade Representative, the Puerto Rico Department of Economic Development and Commerce, and respected business outlets like Bloomberg, The Wall Street Journal, The Economist and Financial Times.
If your industry is represented by a trade association or professional group, reach out to them directly. Many are actively analyzing the specific implications of these tariffs and will provide tailored insights. Understanding the nuances of the tariffs — which countries and sectors they target, what products are involved and when enforcement begins — is essential.
Understand your exposure and plan accordingly
Every business is different, and the impact of these tariffs will vary. Manufacturers and resellers who rely heavily on imported raw materials, especially those from China, Mexico or Europe, may face increased costs or delivery delays.
Now is the time to audit your supply chain:
- Where do your key materials come from?
- Are there alternative suppliers in the U.S. mainland or in tariff-exempt countries?
- Do your contracts include price flexibility or force majeure clauses?
- Can you negotiate better terms or hedge against future cost increases?
Even service-based businesses should stay alert. Tariffs can drive inflation, and inflation can shift customer spending habits. Understanding these second-order effects will help you prepare and pivot.
Reinforce the fundamentals of your business
In uncertain times, returning to business fundamentals is not just smart, it is critical.
- Tighten your cash flow management.
- Revaluate non-essential expenses.
- Build or preserve emergency reserves.
- Avoid taking on risky debt unless you have strong visibility on repayment.
At the same time, do not let fear paralyze you. Maintain close relationships with your customers and vendors. Communicate transparently with employees. Stay visible in your market. In times of uncertainty, customers lean toward brands they trust.
Local partnerships can also serve as a hedge against global volatility. Puerto Rico has a vibrant entrepreneurial ecosystem with a growing interest in local manufacturing, agriculture and technology. Strengthening ties within this ecosystem could reduce external dependencies and enhance long-term resilience.
Engage with policy makers and advocate for support
Puerto Rican business leaders must also recognize the importance of engaging with policymakers. Whether through chambers of commerce, industry associations or direct advocacy, it is vital to ensure that Puerto Rico’s unique economic position is considered in national discussions.
We must remind Washington that Puerto Rico is disproportionately affected by mainland decisions, particularly in trade and supply chain dynamics. The more visible and united our voice, the more likely we are to influence future exemptions, relief programs or federal support.
Strategy over fear
Puerto Rico’s business community has proven its resilience time and time again. We have faced adversity, adapted and emerged stronger. This latest moment of global uncertainty, sparked by shifting trade policy and market volatility, is yet another test of our leadership and resolve.
But we do not pass these tests by panicking. We pass them by staying informed, acting strategically and leveraging our local strengths to navigate global risks.
Let us not forget that periods of disruption often open new doors. Those who remain grounded, flexible and forward-thinking will not only survive but find ways to thrive.
Be informed, strategic and proactive in protecting your business. That is the recipe!
Author Raúl Burgos is president and managing partner of Global 1080 Business Solutions, a consulting firm with over 30 years of experience supporting business leaders across the U.S., Puerto Rico, and Latin America. He is also the founder of the Puerto Rico Business Group on LinkedIn, a professional community of more than 30,000 members focused on economic development and entrepreneurship in Puerto Rico.
