CARICOM Chair Warns of Economic Fallout from US Tariffs

Mia Mottley, Chair of the Caribbean Community (CARICOM), delivered a stark warning about the economic repercussions of the reciprocal tariffs imposed by the United States under President Donald Trump’s “Liberation Day” initiative. In her address, Mottley stated that these tariffs, aimed primarily at Chinese imports, could severely disrupt supply chains, causing price hikes for everyday goods in the Caribbean.

As she said, the Caribbean region, heavily reliant on imported goods from the US, is particularly vulnerable to such global trade disruptions. “Many of those commodities are either purchased directly from the United States of America or pass through the United States of America on their way to the Caribbean region,” Motthley said. “That, my friends, is a legacy of our colonial dependence.”

Motthley said that the repercussions of these tariffs will be felt by consumers across the region, regardless of their economic status. “I want every Caribbean man and every Caribbean woman to hear me: this trade war and the possibility of a 1 million to 1.5 million US dollar levy on all Chinese-made ships entering US harbours will mean higher prices for all of us.”

She stressed that the Caribbean’s economic vulnerabilities leave it susceptible to such global trade fluctuations, and even efforts to diversify the local economy won’t shield the region from the effects.

She said, “Regardless of what any of our Caribbean governments will do, we could lower our tariffs to zero in CARICOM, and it will not make a lick of difference because our economies are small and vulnerable.”

Mottley also warned of the potential negative effects on the Caribbean’s vital tourism sector, as economic challenges in key markets could reduce travel to the region. “We call in our regional private sector and the tourism sector to come together and to work with governments to collaborate for an immediate tourism strategy to ensure that we maintain market share numbers as a region,” she said.

“A lot of Caribbean people will think that these things that you’re seeing on television news or reading about are far away… But the reality, my friends, is that if you buy food, if you buy electronics, if you buy clothes, it will impact you,” Mottley added.

Mottley also appealed directly to President Trump, stating, “I say simply to President Trump, our economies are not doing your economy any harm in any way. They’re too small to have any negative or distorting impact on your country. So I ask you to consider your decades-long friendship between your country and ours and look to the Caribbean, recognising that the family ties, yes, are strong. Let us talk, and let us work together.”