PORT OF SPAIN, Trinidad, CMC—The Power Chamber of Trinidad and Tobago says that whereas the USA market is “vital” to the nation, over 95 % of its exports comprise only a handful of energy-related commodities.
The Chamber famous that over the previous two weeks, world information has been dominated by worldwide commerce and the influence of tariffs launched, which the USA then partially eliminated.
It stated companies and authorities have been scrambling to know the implications of the tariffs and how one can reply.
Imports into the USA from most international locations on the planet, together with Trinidad and Tobago, at the moment are topic to a brand new 10 % tariff with some exceptions. President Donald Trump introduced far-reaching new tariffs on practically all US buying and selling companions, a transfer economists and different merchants say is designed to dismantle a lot of the worldwide financial system’s structure and set off broader commerce wars.
“The US export market is important to Trinidad and Tobago, accounting for about 30 % of T&T’s exports. Over 95 % of T&T’s exports to the USA comprise only a handful of energy-related commodities: crude oil, LNG, methanol, ammonia, fertilizers (urea and UAN), and iron & metal.
“Crude oil and LNG and a few fertilizer imports are exempt from the tariffs, however the different commodities are topic to the ten % tariff and, in some instances, larger commodity-specific tariffs,” the Chamber stated.
Whereas the ten % tariff is utilized throughout the board and paid by the importer, there should still be some implications for Trinidad and Tobago exporters.
“Home producers within the US will not be topic to the tariffs, whereas there can also be imports from sure international locations which can be exempt. This might embody Mexico and Canada, with tariffs on some imports working underneath the USA–Mexico–Canada Settlement (USMCA), and doubtlessly Russia (the place no tariffs have been listed).
“The case of Russia could also be vital for Trinidad as a result of they’re a significant exporter of ammonia. This might imply that Trinidad-produced commodities are much less aggressive within the US market.”
It recalled that when Level Lisas was initially established and expanded, Trinidad and Tobago was thought of a low-cost producer based mostly totally on inexpensive pure gasoline.
“That is not the case because of each larger home gasoline costs and the truth that crops are operating beneath capability. This implies that there’s a hazard that Trinidad exporters could possibly be squeezed out of the market as soon as extra tariffs are levied if there are different sources with out tariffs. Firms are fastidiously monitoring the state of affairs,” the Chamber added.
