The Caribbean could not really feel the total financial shock of latest US tariffs till later this yr and into 2026, however Japanese Caribbean Central Financial institution (ECCB) Governor Timothy Antoine is urging the area to organize now—or danger critical penalties.
Chatting with journalists final Wednesday in Washington, D.C., following conferences with the Worldwide Financial Fund’s (IMF) Western Hemisphere Division, Antoine stated that whereas the fast impression will probably be muted, Caribbean nations should rethink their commerce logistics and meals safety methods to cushion any inflationary blow.
“The large concern is knowing what that shock will imply and its implications, clearly, for tourism—not within the close to time period,” Antoine defined. The conferences have been a part of the IMF and World Financial institution Spring Conferences, which conclude Friday.
The warning comes as international financial uncertainty rises. Based on the IMF’s newest World Financial Outlook, financial development in Latin America and the Caribbean is projected to sluggish from 2.4 p.c in 2024 to simply 2 p.c in 2025, earlier than rebounding modestly. That outlook was downgraded in comparison with earlier forecasts.
“So, what we all know for a truth is that development has slowed,” Antoine stated. “The magnitude of that discount continues to be up for dialogue, and to be trustworthy with you, it is not going to be resolved till the query of the tariffs, for instance, is settled.”
– Commercial –
President Donald Trump’s newly proposed tariffs embrace a 125 p.c obligation on Chinese language imports, 20 p.c on items from the European Union, and numerous charges on different areas—together with a ten p.c tariff for many Caribbean nations and 38 p.c for Guyana. Trump framed the tariffs as a needed transfer to defend American manufacturing, saying, “Our nation has been looted, pillaged, raped and plundered” by overseas rivals.
Whereas negotiations across the tariffs are ongoing, Antoine identified that CARICOM international locations are notably weak due to their deep reliance on US imports—a lot of which originate from third international locations.
“Now we have to see what the tariffs are on these international locations,” he stated. “These items will probably be shipped to the US after which come to the area. They’ll affect us when it comes to inflation, an increase in value ranges.”
Past commerce, Antoine harassed that Caribbean economies are additionally tightly tied to American tourism. Within the Japanese Caribbean Foreign money Union—made up of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines—half of all guests come from america.
“We might see within the latter a part of the yr, subsequent yr, some impression on our tourism arrivals,” he warned. “A slowdown within the US economic system finally might and can affect the Japanese Caribbean Foreign money Union.”
Antoine known as for pressing motion to diversify the area’s commerce and logistics. He famous the heavy dependence on US ports like Miami, even for intra-Caribbean commerce, and stated the area wants its personal logistics hubs.
“A number of our commerce is being shipped to Miami…after which coming again down. Even throughout the Caribbean, we’re utilizing US ports for commerce,” Antoine stated. “Clearly, we have now to repair that, to make it cheaper, to make it quicker and, clearly, to make it extra dependable.”
He floated potential hubs similar to Jamaica, the Dominican Republic, Trinidad, and even Panama, however emphasised that CARICOM should decide quickly.
Meals and diet safety are additionally excessive on Antoine’s agenda. He linked present transport and commerce patterns to rising charges of non-communicable illnesses (NCDs) within the area, fueled partly by the affordability of ultra-processed imported meals over native produce.
“There may be additionally the problem of prices,” he stated. “Frankly spoken, a few of the ultra-processed meals, which is driving NCDs in our area, is cheaper than regionally produced meals and natural meals.”
With family and authorities budgets underneath strain, Antoine stated investing in reasonably priced, wholesome meals programs is essential—not only for public well being however for financial resilience.
“Eight in ten deaths within the area are because of NCDs,” he identified. “Simply take into consideration the financial price of that. After which you consider the familial price, the impression on productiveness. It’s a critical concern.”
Though some progress has been made, Antoine stated that the area is much from assembly CARICOM’s objective of decreasing the meals import invoice by 25 p.c by 2025.
“However we’re engaged on it, and I feel this can be a second for us to actually make a breakthrough on this space,” he concluded.
