Impact of US Tariffs on Guyana’s Economy

Vice President Bharrat Jagdeo, speaking to reporters (CMC PHoto)

Introduction to the Issue

GEORGETOWN, Guyana, CMC – The Guyana government says it will hold talks with local exporters as Caribbean countries continue to examine the magnitude of the sweeping tariffs announced by United States President Donald Trump on their respective economies.

Trump has announced far-reaching new tariffs on nearly all US trading partners, including a 125 percent tax on imports from China and a 20 percent tax 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.

Government Response and Meetings

While Trump this week announced a 90-day suspension of the measure except for China, Vice President Bharrat Jagdeo told reporters that the Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh, will meet with local exporters who may be affected by the tariffs later on Friday.

Jagdeo said that while oil and gas, gold, and aluminum exports will be exempt from the higher tariff rates, businesses relying on income from exporting agricultural produce/products may be significantly impacted.

“And you know, larger numbers of people rely on agriculture for employment opportunities…that is why we are meeting with those groups to see how they are affected,” he said.

Assessing the Impact of Tariffs

Speaking at his weekly news conference, Jagdeo said that discussions with local exporters would assess the impact of the tariffs, even the baseline 10 percent.

“We want to learn all about this …to see if there is anything we [government] can do because it is one thing to talk about the reciprocal tariffs, but there is a 10 percent tariff in place (now),” he noted.

Diplomatic Engagement with the US

Jagdeo said that, importantly, the government plans to use the 90-day window to engage with the US government on trade matters diplomatically. Guyana is among 75 countries that have already contacted Washington on the tariffs.

Jagdeo said he believes Guyana has a strong case since the US trade data used to calculate the tariff percentage differs from Guyana’s data, which is routinely submitted to the United Nations global trade platform, Comtrade.

For instance, US trade data for 2024 shows that Guyana exported US$5.5 billion to the United States. However, only US$1.3 billion was imported, creating a US$4.1 billion trade surplus. In contrast, Guyana’s records show a US $800 million surplus.

Conclusion and Next Steps

Jagdeo said Guyana will not panic or react antagonistically and will pursue constructive engagement with the United States to resolve the matter. “That is the approach we will take on these matters,” he added.

Conclusion

The impact of US tariffs on Guyana’s economy is a pressing issue that requires careful consideration and diplomatic engagement. The government’s decision to meet with local exporters and engage with the US government is a step in the right direction. As the situation unfolds, it is essential to monitor the developments and adjust strategies accordingly.

Frequently Asked Questions

What are the US tariffs announced by President Trump?

The US tariffs announced by President Trump include a 125 percent tax on imports from China and a 20 percent tax on the European Union, among others.

How will the tariffs affect Guyana’s economy?

The tariffs may significantly impact businesses relying on income from exporting agricultural produce/products, as they will be subject to higher tariff rates. However, oil and gas, gold, and aluminum exports will be exempt.