US President Donald Trump Announces Sweeping Tariffs on Caribbean Countries

US President Donald Trump announcing sweeping tariffs on countries including those in the Caribbean

Introduction to the Tariffs

BRIDGETOWN, Barbados, CMC—Caribbean countries were on Thursday assessing the magnitude of the sweeping tariffs announced by United States President Donald Trump on their respective economies, with some indicating that they would seek to hold talks with Washington on reducing the impact of the new taxes.

On Wednesday, Trump announced far-reaching new tariffs on nearly all US trading partners, including a 34 percent tax on imports from China and 20 percent on the European Union, among others. Economists and other traders say the move is designed to dismantle much of the global economy’s architecture and trigger broader trade wars.

Impact on the Caribbean

In the Caribbean, Trump announced a 10 percent tariff on most regional countries, while in Guyana, the tariff is as high as 38 percent.

Trump said that the tariffs were designed to boost domestic manufacturing and used aggressive rhetoric to describe a global trade system that the United States helped to build after World War II, saying, “Our country has been looted, pillaged, raped and plundered” by other nations.

Response from Guyana

The Guyana government said it is engaging the United States on the 38 percent reciprocal tariffs, with Finance Minister Dr. Ashni Singh saying, “The government of Guyana has taken note of the reciprocal tariffs announced by the US government… our Government is closely engaged with our US partners to better understand the issue and have it addressed as appropriate.”

The Private Sector Commission (PSC) warned that Guyana would be severely affected by the protectionist measure.

Response from Trinidad and Tobago

“The United States remains Guyana’s largest trading partner, making it imperative for us to assess the implications of this recent tariff carefully,” PSC Chairman Komal Singh said, adding, “A comprehensive review is necessary to identify common ground and ensure that bilateral trade continues to thrive as our economy expands.”

Prime Minister Stuart Young, speaking at a public meeting of the ruling People’s National Movement (PNM) on Wednesday as it prepares for the April 28 general election, told supporters that they could trust the PNM to act responsibly to negotiate its best interest in light of new tariffs imposed by the US.

Response from Other Caribbean Countries

Foreign and CARICOM Affairs Minister Dr Amery Browne said, “We are concerned that spiraling instability in global trade and economic policy will have significant negative repercussions, particularly for smaller nations.

“Fortunately, our country, and much of CARICOM, is in a relatively low tariff bracket, and the government will always consult and work with all key stakeholders as we navigate the challenges of our times together,” he told the Newsday newspaper.

Antigua and Barbuda Prime Minister Gaston Browne, noting Washington’s new tariffs, posted on his Facebook page a newspaper article that read, “Under the arrangement, Antigua and Barbuda maintains its existing 10 percent tariff on US goods, while receiving a matching 10 percent discounted reciprocal tariff from the United States.”

Impact on Trade and Economy

Minister in the Ministry of Finance in Barbados Ryan Straughn said the reality is that everything, including goods, will be impacted by the tariff increase.

He said producers will now have to find the most efficient way to produce their products, “which could mitigate the increase in tariffs or take the bold step and move as a cooperative to be able to invest directly in the United States … to avoid paying the tax.

Straughn said that CARICOM countries should seek to take further advantage of intra-regional trade, particularly given that the Common External Tariff (CET) provides for “mostly duty-free ” entry into regional markets among member states.

Conclusion

Economists say the United States action amounts to a historic tax hike that could threaten the global order.

Trump said he was acting to generate hundreds of billions in new revenue for the US government and restore fairness to global trade.

“Taxpayers have been ripped off for over 50 years,” he said. “But it is not going to happen anymore.”

Frequently Asked Questions (FAQs)

Q: What are the new tariffs announced by US President Donald Trump?

A: The new tariffs announced by US President Donald Trump include a 34 percent tax on imports from China, 20 percent on the European Union, and 10 percent on most Caribbean countries, with a 38 percent tariff on Guyana.

Q: How will the tariffs affect the Caribbean countries?

A: The tariffs will have a significant impact on the Caribbean countries, particularly Guyana, which will face a 38 percent tariff. Other countries in the region will face a 10 percent tariff.

Q: What is the response of the Caribbean countries to the tariffs?

A: The Caribbean countries are assessing the magnitude of the tariffs and seeking to hold talks with Washington to reduce the impact of the new taxes. Some countries, such as Guyana and Trinidad and Tobago, have already started engaging with the US government to address the issue.