The Bahamas authorities on Wednesday issued a warning that the proposed 10 % tariff by america on items and companies exported from Caribbean Neighborhood (CARICOM) international locations “may doubtlessly affect each commerce flows and customer arrivals.”
Prime Minister Phillip Davis, presenting the US$3.89 billion price range to Parliament, highlighted the deep financial ties between the Bahamas and america. “The USA stays The Bahamas’ principal buying and selling accomplice, accounting for roughly 83.3 % of our complete imports in 2024, valued at an estimated 5 billion US {dollars},” he stated.
Davis additionally famous the importance of US guests to the nation’s tourism sector. “This longstanding financial partnership can also be mirrored in our tourism sector, the place, in 2024, 84 % of our stopover guests originated from america.”
The warning comes within the wake of US President Donald Trump’s April announcement of sweeping new tariffs on practically all US buying and selling companions. Trump’s plan features a 10 % tariff on most Caribbean nations, whereas Guyana faces tariffs as excessive as 38 %.
Prime Minister Davis emphasised that whereas the Bahamas’ shut relationship with Washington has introduced many advantages, it additionally exposes the nation to financial uncertainties from the US. “Any slowdown or heightened financial uncertainty in that market can have a direct affect on Bahamian commerce and tourism. This sensitivity is especially related contemplating current coverage bulletins from america, particularly, the proposed imposition of a ten % tariff on all Caribbean nations, together with The Bahamas.”
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He added, “Such a measure, if applied, may doubtlessly affect each commerce flows and customer arrivals. On this context, the federal government is dedicated to pursuing constructive dialogue with our US and CARICOM companions to handle the implications of this coverage shift in a way that protects and promotes mutual financial pursuits.”
Forward of the tariff announcement, the Bahamas had already been taking steps to strengthen its financial resilience. Davis pointed to the adoption of a Nationwide Commerce Coverage aimed toward diversifying exports and lowering reliance on any single market. “On the core of those efforts is a dedication to making sure that world commerce developments don’t unduly drawback Bahamian companies or shoppers.”
The federal government has additionally been working with the non-public sector to discover commerce alternatives with Canada, the Dominican Republic, Ghana, and India, in addition to investigating new delivery channels and logistics options.
Prime Minister Davis cited a sensible instance of commerce diversification benefiting shoppers: “The typical worth of a dozen eggs in The Bahamas at the moment stands at US$3.79. Compared, throughout the interval when eggs have been primarily imported from america, costs soared to as a lot as US$10 per dozen eggs because of the devastating affect of chicken flu on the American poultry trade.”
He defined that with authorities help, the non-public sector shifted sourcing to the Dominican Republic, stabilizing provide and reducing prices for Bahamian shoppers.
“The truth that Bahamian shoppers are paying much less highlights the optimistic affect and strategic benefit of diversifying our commerce partnerships,” Davis stated, noting that the typical worth of eggs in Florida now stands at round US$5.60 per dozen.
The federal government’s proactive commerce technique goals to defend the Bahamas from the opposed results of adjusting world commerce insurance policies whereas selling sustainable financial progress.
