US tariffs on Chinese-built ships will impact Caribbean economies

Guyana’s President Irfaan Ali has voiced concern over US President Donald Trump’s plan to impose tariffs on ships/vessels made in China. Dr. Ali said this could impact trade in Guyana and the region.

In a statement over the weekend, Ali said Guyana, Suriname, and Trinidad and Tobago would need to assess the implications for tankers and other vessels transporting oil and gas.

“That, of course, can have effects on the cost of goods coming into the region, the cost of transport coming into the region...This is a policy that was alluded to so there are some discussions that will have to occur, so all of these things are key regional issues that we are discussing together,” President Ali explained.

Meanwhile, Prime Minister Gaston Browne of Antigua & Barbuda has also expressed worries about the the possible economic effects of the planned US tax on ships made in China that call at US ports.

The legislation, presented by the United States Trade Representative, would levy fines of up to US$1.5 million on China-made vessels or fleets that contain Chinese-manufactured ships.

Fearing a major economic impact on the twin-island nation, Browne said his administration has been talking about the issue in cabinet meetings for weeks. He made this revelation during his weekly radio show over the weekend.

Browne said based on an analysis done, shipping a container could increase by about US$3,000 to US$4,000. He said if that happens, the island would be looking at an increase in prices of between eight and 10 per cent, which would be extremely inflationary, especially given the current elevated inflation rate of approximately 4.5 per cent. This could push inflation to as high as 12 or 14 per cent.

The problem has attracted the attention of other Caribbean heads of government as well. During a recent emergency virtual conference with the Regional Private Sector Organisation, CARICOM leaders had discussed the issue.

To further examine the matter, CARICOM leaders will meet with US Secretary of State Marco Rubio in Jamaica today, Wednesday March 26.