CPSO warns of severe impact from US tariff hike on Trinidad and Tobago

The Caricom Private Sector Organisation (CPSO) is warning that the United States’ decision to increase Trinidad and Tobago’s reciprocal tariff rate from 10 per cent to 15 per cent could have the most severe impact on any Caribbean Community (Caricom) member state.

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“Trinidad and Tobago was already the most exposed Caricom economy under the reciprocal tariff regime,” said CPSO chief executive officer and technical director, Patrick Antoine.

The tariff adjustment, which took effect on August 7, follows the introduction of a 10 per cent baseline rate in April 2025 under Washington’s “America First” trade policy. Prior to April, Caricom member states enjoyed duty-free access to the US market through the longstanding Caribbean Basin Initiative (CBI).

Antoine said the higher tariff magnifies the risks faced by Trinidad and Tobago, adding that the losses would be concentrated in critical export sectors. “This adjustment not only increases the scale of potential losses, but it does so in sectors that are vital to our industrial capacity and to US manufacturers who rely on our exports for input,” he said.

CPSO modelling now projects potential annual export revenue losses of US$291.9 million for Trinidad and Tobago, up from US$194.6 million under the 10 per cent baseline. More than two-thirds of those losses are expected in the base metals sector (US$199.3 million) and the chemicals sector (US$74.8 million).

The base metals category includes iron and steel products widely used in US construction, automotive and manufacturing industries, while the chemicals category covers exports such as anhydrous ammonia, methanol and urea — key inputs for fertiliser production, plastics, and other industrial processes.

Antoine linked the development to a broader erosion of Caricom’s trade position with the US, warning that preferential access that has underpinned the economic relationship for decades is being steadily eroded. “In our recent submission to the US review of the Caribbean Basin Initiative, we highlighted that these new tariffs erode the preferential access that has underpinned our economic partnership with the US for decades. That erosion is now accelerating,” he said.

The CPSO said coordinated regional action is urgently needed. Antoine argued that the latest tariff hike should be treated as a signal for rapid response. “The joint regional and private sector position that secured exemptions for China-built ships and short-sea shipping for the region is a proven model of collaboration,” he said. “Now is the time to apply that same resolve, to protect current trade flows, engage the US on tariff differentials and position Trinidad and Tobago and Caricom for long-term strength in a more contested global market.”