Bharath urges swift Govt action to

Gail Alexander

Senior Political Reporter

On the eve of the US’s 15 per cent tariff on Trinidad and Tobago exports taking effect tomorrow, former UNC trade minister Vasant Bharath has urged Government’s inter-ministerial team to act swiftly in addressing the tariff’s implications.

And Chaguanas Chamber president Baldath Maharaj has called for the inter-ministerial team’s first meeting to result in a “clear, coordinated national response”. Both have made recommendations for T&T on the issue.

Bharath expressed concern over the implications of the recent US tariff decision. Concerns have been raised about the potential negative impact of the tariff on T&T’s economy, particularly on the key energy and manufacturing industries.

On Monday, Vivek Charran (Confederation of Regional Business Chambers chairman) also warned of possible knock-on effects on imports, particularly US-branded goods such as cellphones, clothing and footwear, household appliances, furniture, and other items manufactured in high-tariff countries like China, India, Canada and Brazil. Products routed through US distributors could see price hikes once current stocks run out.

An inter-ministerial team was due to begin meeting yesterday on a plan of action, including exploring talks with the US, plans for stakeholders and outreach in other external areas. Government sources expect word on outcomes will be delivered to the media after tomorrow’s Cabinet meeting.

Bharath, who emphasised that T&T must not underestimate the indirect economic fallout of the tariff, said, “This situation is a wake-up call. This country must engage diplomatically and economically to safeguard its trade interests. The inter-ministerial team must act quickly and decisively. Our future prosperity depends on how quickly and intelligently we adapt to these changing global conditions.”

He added, “This latest move by the US reflects a continuing trend of protectionism that is reshaping global trade dynamics. As a small, open economy that relies heavily on international trade, we cannot afford to be passive observers.”

Bharath cited potential areas of concern:

• Export competitiveness: If T&T’s manufactured or downstream energy products fall within the tariff regime or become less competitive against subsidised US counterparts, T&T risks losing hard-won market share.

• Manufacturing sector pressure: As the sector, already contending with rising energy and input costs, could face added difficulty accessing or maintaining footing in the US market.

• Investor uncertainty: Global investors respond poorly to volatility. Prolonged trade frictions and unpredictability in tariffs and regulations can deter new investment in T&T’s industrial and export sectors.

• Regional vulnerability: Shocks to the global trading system inevitably affect T&T’s supply chains and import prices. This will place additional pressure on consumers and local producers.

However, Bharath said where there are barriers, there are also opportunities. “If global suppliers are displaced due to higher US tariffs, T&T may be able to position itself—particularly in niche manufacturing, agro-processing, and value-added exports—to fill emerging gaps.”

Bharath urged Government and private sector to use this moment as a catalyst to accelerate diversification and improve competitiveness. He advocated expanding into new markets beyond North America, deepening trade within Caricom and Latin America, and pursuing bilateral agreements that shield T&T exporters from future shocks.

“We need a smarter, more strategic trade agenda which strengthens our industrial base, improves logistics, enhances value chains, and ensures our businesses aren’t left behind in a rapidly evolving global marketplace.”

Chaguanas Chamber to raise concerns at meeting tomorrow

Commending the Government for convening an urgent ministerial meeting, Chaguanas Chamber president Maharaj said they will raise the matter as one of national economic concern at its breakfast meeting tomorrow on security and business resilience. Attendees include business leaders, policymakers, and key national figures.

Maharaj added, “The US is one of our most important export partners. This tariff threatens to erode the competitiveness of T&T’s key industries, particularly manufacturing, food and beverage, and agro-processing, at a time when many businesses are already navigating a challenging global environment. The risk to foreign exchange earnings, job stability, and long-standing trade partnerships cannot be overstated.”

The chamber is particularly concerned about the compounded effect the tariff could have on exporters, as many local manufacturers rely on raw materials sourced via the United States, which are already subject to US duties.

“With this new measure, those same materials once processed into finished goods in T&T will face a second tariff upon re-entry into the US market. This double burden could render many of our exports uncompetitive, undermining years of investment and hard-won market access,” he added.

The chamber stated that if the tariff rate applied to T&T is lower than those imposed on some other countries, it could provide a limited advantage for certain local products—provided exporters act quickly to identify and capitalise on areas where they remain cost-competitive.

The group further advocated initiating immediate bilateral discussions with US trade officials and embassy representatives to clarify the rationale and advocate for reconsideration, exemptions, or phased implementation.

Also suggested was the presentation of a data-backed economic impact assessment, highlighting the risks to local industry and US importers; submitting a targeted list of product categories where exemptions or waivers may be feasible; and identifying/promoting sectors where T&T remains competitive under the tariff.