WASHINGTON, CMC – For many years, the 14 impartial Caribbean Group (CARICOM) nations have helped maintain American prosperity by importing way more from the US than they export, creating an everlasting commerce surplus in Washington’s favor.
But, they haven’t escaped the tariffs that President Donald Trump has imposed on all international locations worldwide.
13 of the 14 CARICOM nations now face a ten% tariff on all their exports to the US; nonetheless, Guyana – a comparatively giant oil exporter – faces a tariff of 38%.
As a result of CARICOM nations persistently favor US items, American industries, farmers, and producers have lengthy discovered worthwhile markets in our small economies.
In the meantime, our exports stay modest and pose no menace to US producers, as confirmed by the US Commerce Consultant’s annual reviews to Congress.
Making certain US Power Safety
After all, there are exceptions that illustrate one other type of partnership. Guyana and Trinidad and Tobago -two of our member states with commerce surpluses with the US – present important oil and fuel provides. This isn’t merely a industrial association; it meets a core US want for safe, reliable vitality sources. These exports have strategic significance. They make sure that the US has close by, pleasant suppliers in instances of volatility and hostility.
Affect on Haiti’s Path to Restoration
One extremely delicate case for the CARICOM group now’s Haiti, the place the social and financial material stays beneath pressure from political uncertainty and armed teams disrupting every day life. Imposing additional tariffs on Haiti’s exports beneath the present circumstances dangers inhibiting the very progress the nation so urgently wants. Deterioration in Haiti’s financial circumstances will solely improve the Haitian impetus to hunt refuge within the US.
Undermining the Spirit of CBI and CBERA
Since 1983, beneath President Ronald Reagan, the US has acknowledged the significance of supporting Caribbean growth – and, by extension, US safety pursuits – by measures just like the Caribbean Basin Initiative (CBI) and the Caribbean Basin Financial Restoration Act (CBERA). These applications opened new alternatives for our international locations to take part extra totally in worldwide commerce whereas benefiting American exporters in search of markets for his or her merchandise. At the moment’s tariffs, nonetheless, threaten to undo these positive factors by treating CARICOM international locations as if they impose excessive obstacles on US items or run giant surpluses at America’s expense.
Strengthening the Case with Knowledge
We don’t have to look far for proof of CARICOM’s constant assist of the US economic system. For example, information from the US Census Bureau exhibits that 2024 the US ran a commerce surplus of $5.8 billion with CARICOM as a complete. For a tangible illustration, Antigua and Barbuda’s imports from the US exceeded $570 million. On the similar time, its exports, in return, have been a mere fraction of that complete – demonstrating a deep commerce surplus in favor of the US. The identical story is repeated throughout our member states, underscoring our loyalty to the US market.
The Human and Financial Prices
Whereas President Trump’s new tariffs, introduced on April 3, will increase the price of CARICOM merchandise in the US and really seemingly cut back exports and revenues for already challenged Caribbean economies, American customers may even really feel the consequences. Will increase in obligation charges usually translate to larger costs on retailer cabinets. Thus, whereas Caribbean exporters lose potential revenue, US patrons face larger prices.
Given restricted assets in most CARICOM international locations, any drop in export earnings can hit native communities arduous. This complicates broader restoration efforts for nations battling financial hardship. Nonetheless, a decline in these international locations’ financial circumstances may even deprive US companies of markets the place they’ve traditionally thrived.
Why CARICOM Will Not Retaliate
Regardless of these tariffs’ hurt, CARICOM international locations are unlikely to reply with reciprocal duties for one elementary cause: we import 60 to 70 % of our shopper merchandise from the US. Matching US tariffs with equally excessive obstacles would solely push up the price of dwelling for our inhabitants. Our economies can not afford to have interaction in a tit-for-tat situation that may escalate right into a extra vital commerce battle, undermining stability in our area and the broader hemisphere.
Avoiding a International Commerce Struggle
The very last thing our area desires is to exacerbate a world commerce struggle. When highly effective nations escalate tariff battles, the implications ripple out to susceptible communities worldwide -including ours. CARICOM’s precedence is a steady atmosphere that advantages all, together with the US, by sustaining commerce relationships which have proved useful over many a long time.
A Constructive Path Ahead
Because the Ambassador of Antigua and Barbuda to the US and Dean of Ambassadors of Western Hemisphere international locations (together with CARICOM nations), I respectfully urge a considerate evaluate of the tariffs positioned on our member states. Now we have faithfully supported US financial pursuits by buying American items and welcoming American traders, and we stand able to proceed doing so. Reviewing these tariffs – notably the place they compromise CBI and CBERA goals or burden international locations striving to construct resilience to disasters – can be a constructive transfer that strengthens our shared dedication to prosperity and safety.
For the American folks, upholding robust commerce ties with CARICOM delivers accessible, high-quality merchandise and dependable export markets that, in flip, shield and create jobs inside the US.
For CARICOM’s half, we stay dedicated to purchasing American, as we’ve got performed for many years. We are able to protect and enrich the partnership that has introduced many advantages to each side. This may assist strengthen America and make sure that the Caribbean stays a cornerstone of regional stability, financial development, and goodwill—in the end benefiting all, together with the US.
*(The author is Antigua and Barbuda’s Ambassador to the US and the OAS. He’s additionally the Dean of the Ambassadors of the Western Hemisphere Group accredited to the US. The views expressed are totally his personal.)
