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Trump Tariffs Spur Manufacturing Boom in Puerto Rico
President Trump's tariff policies are contributing to a revitalization of manufacturing in Puerto Rico, with companies like Millicent Pharma establishing production operations on the island. The move comes as at least seven other manufacturers have expanded or initiated operations since Trump took office, attracted by the tariff exemptions that come with U.S.-based production. Governor Jenniffer Gonzalez highlights that this influx of investment is essential as Puerto Rico grapples with a slow economic recovery following previous natural disasters and economic challenges.
Manufacturing, particularly pharmaceuticals, plays a critical role in Puerto Rico's economy, accounting for approximately 43% of its GDP, contrasting sharply with the tourism sector which only represents 2%. The incentives provided by local authorities, such as a low corporate tax rate and no federal taxes, alongside a skilled workforce trained in STEM fields, are crucial in attracting these companies. Millicent, for instance, plans to invest $45.5 million and create at least 73 jobs as it shifts production from Canada.
An expert opinion in transportation notes that such changes could positively influence logistics and supply chain networks within the pharmaceutical industry. As companies seek to localize manufacturing to mitigate tariff impacts, Puerto Rico's established infrastructure and experience with pharmaceutical production can facilitate efficient distribution channels to the U.S. mainland. This trend could signal a broader shift toward onshore manufacturing in response to global trade dynamics.
Manufacturing, particularly pharmaceuticals, plays a critical role in Puerto Rico's economy, accounting for approximately 43% of its GDP, contrasting sharply with the tourism sector which only represents 2%. The incentives provided by local authorities, such as a low corporate tax rate and no federal taxes, alongside a skilled workforce trained in STEM fields, are crucial in attracting these companies. Millicent, for instance, plans to invest $45.5 million and create at least 73 jobs as it shifts production from Canada.
An expert opinion in transportation notes that such changes could positively influence logistics and supply chain networks within the pharmaceutical industry. As companies seek to localize manufacturing to mitigate tariff impacts, Puerto Rico's established infrastructure and experience with pharmaceutical production can facilitate efficient distribution channels to the U.S. mainland. This trend could signal a broader shift toward onshore manufacturing in response to global trade dynamics.
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