ANTIGUA PM GASTON BROWNE WARNS CARIBBEAN OF TARIFF IMPACT; ST.KITTS PM DREW SILENT

CARIBBEAN ECONOMY AT RISK AS U.S.-MEXICO-CANADA TARIFF WAR ESCALATES
BASSETERRE, St. Kitts – As U.S. President Donald Trump moves forward with imposing sweeping tariffs on some of America’s closest trading partners—Mexico, Canada, and China—the economic consequences for the Caribbean could be significant. The region, which heavily relies on imports from these nations, faces the risk of higher costs for essential goods, supply chain disruptions, and an overall economic slowdown.
The Trump administration’s tariffs, which include a 25% levy on some imports and a 10% tariff on others, are set to take effect on Tuesday, February 4. The move bypasses the North American Free Trade Agreement (NAFTA) and has already sparked global concern. Antigua and Barbuda’s Prime Minister, Gaston Browne, weighed in on the matter at the recently concluded CAF Meeting in Panama, suggesting that the issue should be a key topic at this month’s CARICOM Heads of Government Meeting in Barbados.
“Well, I hope that they propose tariffications, that they hyperbolise because if indeed the United States were to introduce tariffs in any significant way on a broad variety of goods, clearly it will impact significantly on growth and development within the Caribbean region. And perhaps this is one of the issues that we ought to address at CARICOM at our next meeting and for us to issue a joint statement or to write jointly to President Trump and his administration to ask them to consider the impact of any such tariffication on these small vulnerable countries in the Caribbean,” Browne stated.
Like much of the Caribbean, St. Kitts and Nevis relies on imports to sustain its economy, with food imports alone valued at $200 million in 2023. Amid lingering global inflation, the prospect of additional tariffs has many residents worried about rising prices.
Accountant Schneidman Warner recently analyzed how Trump’s tariffs could impact St. Kitts and Nevis directly.
“We are a tiny market, but if countries are forced to cut their prices in order to keep the price of goods attractive when importing to the United States, you know what they’re going to do? When they’re selling it to other countries that don’t have the bluster and the power as the United States, they’ll increase the price. So something that they’re willing to sell to the United States for $100—when they add a 25% tariff on, it enters the United States at $125.
They may say to St. Kitts, we’ll sell it to you for $110, so we could try and recover some of the money we’ve lost by selling it cheaper to the United States. And it’s not just St. Kitts, but other countries worldwide could see higher prices as manufacturers attempt to recoup losses. It is not practical to simply move manufacturing, as Donald Trump is suggesting. If you want our markets, bring your factories here and let them manufacture the goods here,” Warner explained.
Trump’s 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese imports are expected to hit a range of industries, including agriculture, manufacturing, and energy. In response, both Mexico and Canada have pledged to retaliate with their own countermeasures.
Canadian Prime Minister Justin Trudeau confirmed plans to impose 25% tariffs on $155 billion worth of American goods, with $30 billion in tariffs taking effect immediately and another $125 billion to follow in three weeks.
“I am announcing 25% tariffs on $155 billion worth of U.S. goods. As of Tuesday, $30 billion worth of U.S. products will be affected, and in 21 days, to allow Canadian companies the opportunity to find alternatives, this will be the case for $125 billion worth of products,” Trudeau stated.
He added: “Our response will also be far-reaching and include everyday items such as American beer, wine, and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing, and shoes. It’ll include major consumer products like household appliances, furniture, and sports equipment, and materials like lumber and plastics, along with much, much more.”
Mexico’s President also confirmed that directives have been issued to impose tariffs on American goods.
“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do, and the laundering of money that this illegal activity generates, which has done so much harm to its population,” she wrote on social media.
Trudeau further noted that these tariffs would have repercussions for Americans, warning that increasing mass deportations could lead to food supply disruptions in the U.S.
“Tonight, first, I want to speak directly to Americans, our closest friends and neighbours. This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people. As I have consistently said, tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said.
He added: “They will raise costs for you, including food at the grocery stores and gas at the pump. They will impede your access to an affordable supply of vital goods crucial for U.S. security, such as nickel, potash, uranium, steel, and aluminium. They will violate the free trade agreement that the President and I, along with our Mexican partner, negotiated and signed a few years ago.”
While leaders across the Caribbean have begun voicing concerns, Prime Minister Dr. Terrance Drew has yet to comment on how these escalating trade tensions will impact St. Kitts and Nevis. His silence has left many in the business sector anxious about the government’s plan—if any—to mitigate the fallout from rising prices and potential economic slowdowns. As the situation unfolds, the region waits to see how CARICOM will respond and whether a unified approach will be taken to protect the Caribbean’s economic stability.
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