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Senior Minister and Minister of Foreign Affairs, Dr. Denzil Douglas, has addressed concerns regarding the potential impact of the recently announced trade tariffs by the United States on St. Kitts and Nevis, emphasizing that the Federation could face higher prices on imported goods and longer shipping delays.

Dr. Douglas was responding to a question on how the presidential statements on trade tariffs by the United States could affect St. Kitts and Nevis. He recalled that St. Kitts and Nevis, along with other Caribbean nations, had long benefitted from favorable trading conditions under the Caribbean Basin Initiative (CBI), established during the Reagan administration. The CBI allowed for tariff-free entry of goods manufactured in the Caribbean into the US market, boosting the region’s manufacturing sector.

“Over the years, we have been the beneficiary of good trading relationships between the United States of America and the Caribbean, St. Kitts and Nevis included,” Dr. Douglas stated. “It was a time when our manufacturing sector, in particular, would have been the beneficiary. Companies established in St. Kitts and Nevis, originating out of Puerto Rico, were tariff-free when goods entered into the US market. That has changed dramatically over the years.”

Dr. Douglas explained that while St. Kitts and Nevis does not currently export significant volumes of goods to the US, the new tariffs could still have a ripple effect on the local economy. The Federation imports the majority of its goods from the US through ports in Miami, St. Thomas, and New York. Increased tariffs on goods from countries that trade with the US will likely result in higher prices for imported items, further exacerbating the rising cost of living.

“It is expected for us to pay higher prices for the goods that have been imported from ports of origin where increased tariffs would have been placed,” Dr. Douglas noted. “Not only will this impact us because of the increase in tariffs, but we have already been impacted because of COVID, where it takes much longer for goods to arrive at our ports. Now we are going to experience, I would think, maybe longer periods for goods to arrive, the cost of these goods would go up, and then, of course, it will impact negatively on the cost of living for our people.”

Dr. Douglas also highlighted that the global community is pushing back against the US tariffs, with Canada recently securing a temporary suspension of tariffs on Canadian goods following pressure from its government. He expressed hope that such diplomatic responses could help alleviate some of the burdens on small nations like St. Kitts and Nevis.

“We are a small part of the hemisphere. Our contribution to trade at the moment in terms of American goods going into the American ports is not as significant as it was before,” he said. “We are still waiting to see how those tariffs will impact positively or negatively on the cost of goods, depending on what side of the equation you’re sitting.”

The Senior Minister’s remarks underscore the Federation’s vulnerability to global trade policies and the importance of continued diplomatic engagement to safeguard the nation’s economic stability.