Economists Say Rising US Trade Tensions Could Impact Jamaica

Local business leaders and economists are warning of a potential fallout from escalating trade tensions between the United States and key countries.

The caution comes after US President Donald Trump, on Monday, increased tariffs on goods from three of its major trading partners.

These are China, Canada and Mexico.

Economist, Dr. Damien King, President of Private Sector Organisation of Jamaica, Metry Seaga and President of the Jamaica Chamber of Commerce, Phillip Ramson all warn of the domino effect this could have on the local economy.

Chevon Campbell tells us more.

Making good on previous threats, President Donald Trump on Monday announced a 25 percent tariff on specific goods coming from Canada and Mexico.

This was coupled with a 10 percent levy on Chinese goods.

The US president threatened the countries with further increases if they sought to retaliate.

Not to be cowed, China has already responded with tariffs on US goods along with Canada.

It’s unclear if Mexico will follow suit.

A tariff is a tax imposed by one country on the goods and services imported from another.

It is paid by the importer of the imposing country.

This increased cost is then often passed on to their customers.

This inevitably leads to a rise in consumer prices.

The escalating trade war has already sent shock waves throughout global markets.

Economist Dr. Damien King is warning Jamaicans they will not be immune from the tariffs.

JCC President, Phillip Ramson, is of a similar view.

The erratic and often unpredictable actions of the Trump administration have also given local state economic planners pause.

The Planning Institute of Jamaica has adopted a wait-and-see approach, unable to properly assess how these policies will impact their growth projections.

Similarly, the Bank of Jamaica has halted its interest rate adjustments as it reevaluates the inflationary fallout of US tariffs policy.

However, PSOJ President, Metry Seaga, is of a different mindset.

He sees the rising tariffs as a potential opportunity.

Only time will tell how Jamaica will fare in the new realities being shaped by President Trump.