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August 01.2025
2 Minutes Read

Trump's Tariffs on Guyana and Trinidad: What It Means for Exports

Discussion on tariffs with a chart, American flag background.

Tariff Turmoil: How New Trade Policies Hit Caribbean Nations

It’s official: Donald Trump’s tariffs are back and they’re making waves in the Caribbean! Last week, the former president announced a 15% tariff on goods imported from Guyana and Trinidad and Tobago. This announcement has sounded alarm bells for the small economies of these nations, which are already grappling with challenges like rising supply chain costs and market instability.

Understanding the Impact on Caribbean Exports

This new tariff regime arrives just after a brief 90-day reprieve from harsher tariffs, which reportedly included a terrifying proposal for a 38% rate on Guyana. For many businesses, the rollback to a 15% tariff is a small comfort amidst chaos. Howard Bulkan, a Guyanese exporter, voiced his concerns, explaining how this rate change, along with the previous 10% tariff, adds immense strain to their operations.

A Struggle for Sustainability

In Guyana, the timing couldn’t be worse. The country’s overall GDP is thriving, mostly thanks to a boom in offshore oil production. Still, local businesses are desperately trying to diversify their exports beyond oil, looking at products like wood furniture and agro-processing. Now, with this new tariff potentially increasing their costs by 20-25%, it could be tough to remain competitive. Ramsey Ali, the President of the Guyana Manufacturing and Services Association, noted that these measures directly undermine their competitiveness and could force businesses to rethink their export strategies.

Trading in Trouble: The Trinidadian Perspective

Over in Trinidad and Tobago, manufacturers who send products like petrochemicals and ammonia to the U.S. are bracing for impact. The extra costs incurred from tariffs will likely ripple through supply chains, affecting numerous sectors tied to construction and industry in the U.S. When mixed with ongoing inflation challenges, the resulting economic strain begs the question: how long can these Caribbean economies withstand such pressures?

Conclusion: Why You Should Care

This isn’t just about tariffs and trade; it’s about communities, livelihoods, and the backbone of nations facing adversity. If you’re curious about how these global trade issues ripple through markets and affect everyday lives, keep an eye on these developments.

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