Trump Administration Slaps Belize with 10% Tariff

The Ministry of Foreign Affairs has announced that officials are quickly analyzing the situation and will consult with relevant stakeholders to protect Belize’s economic interests. In recent years, Belize’s top exports to the U.S. have been sugar and fisheries products. A swift response is crucial, whether through direct talks with U.S. officials or a coordinated effort with CARICOM. How will this impact our local economy? We spoke with Economic Consultant, Doctor Leroy Almendarez, to get his perspective on this latest development. Here’s what he had to say.

 

Dr. Leroy Almendarez, Economic Consultant

“In essence, every country that is applying a tariff to American products we are now applying a tariff to each one of those countries. I must immediately say that countries can do that. It goes way back to the history regarding trade. Even Germany tried it for infant industries to survive. In this case what they are saying is my manufacturers and those people who do business in America, if I make the cost of goods coming into the country a little bit more expensive, trying to apply these rebalancing tariffs, or tariffs, then it simply means they will be able to survive. The only way that really happens is if I can provide everything I need, the inputs etc. When I looked at it, and honestly, I left because I watched it and said, is Belize being tariffed, because I didn’t see it. Then I went back, and I looked at the countries and saw the application of the ten percent. I also noticed reciprocally Belize applies ten percent as well. So, this was a direct reciprocity, one for one, because it could have been less than third percent.”