3 weeks ago
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Senior Multimedia Journalist
Trinidad and Tobago is bracing for a potential economic blow as the United States ramps up tariffs on local exports to 15 per cent, triggering fears of reduced competitiveness, shrinking foreign exchange inflows, and hits to the manufacturing and energy sectors.
With the new tariff set to take effect on Thursday, Government has rushed to establish an inter-ministerial committee to chart a response and way forward, as key industries such as methanol, ammonia, and perhaps urea face uncertainty in the critical US market. They are set to meet on Tuesday.
Foreign Affairs Minister Sean Sobers confirmed to Guardian Media that Prime Minister Kamla Persad-Bissessar ordered an urgent review over the weekend, warning that the increased levy—up from 10 per cent in April—could have serious short- and long-term consequences for the economy.
“We prepared a report, which was actually on Thursday night. I think that would have been about 1.30 in the morning, we had a call from the Prime Minister, and she gave instructions. Based upon those instructions, we’ve been working throughout the weekend on figuring out our move going forward,” Sobers said.
He said the committee was expected to comprise various ministries, including foreign affairs, energy, trade, finance, and planning.
In one of its articles in April this year, the T&T Energy Chamber stated that the US export market is very important to T&T, accounting for about 30 per cent of T&T’s exports.
It also noted that over 95 per cent of T&T’s exports to the USA comprise energy-related commodities: crude oil, LNG, methanol, ammonia, fertilisers (urea and UAN), and iron and steel.
Crude oil, LNG and some fertiliser are exempt from the tariff, the chamber added.
On Thursday, US President Donald Trump set a 15 per cent tariff on imports from T&T under a new executive order titled “Further Modifying the Reciprocal Tariff Rates.”
Guyana and Venezuela also face a 15 per cent tariff.
The announcement by the US was part of a sweeping update to the US tariff schedule affecting 69 trading partners worldwide.
Sobers also shared that Government has a “multi-pronged approach” that it intends to implement, including working very closely with all affected stakeholders to try to bring some resolution.
“Obviously there are certain steps that we’d have to go through, and we’d have to deal with COTED (Council for Trade and Economic Development) as well. There are a number of things that we’ve looked at within the last couple of days to try to figure out what are our steps moving forward, but that is basically in the short term what we intend to do.
“Then we do have long-term plans that we intend to engage in, which you will see being ruled out within the very near future to address this issue,” Sobers added.
The Foreign Affairs Minister, however, urged people not to be alarmed as he reinforced that Government is looking at the issue.
TTMA: It will hurt business
Guardian Media also reached out to president of the T&T Manufacturers’ Association (TTMA) Dale Parson, who said the increase would have a negative impact on business.
“This additional five per cent will have a terrible negative impact on all goods and services exported from Trinidad into the United States,” he said, noting that 39.4 per cent of all T&T’s exports go to the US.
The Central Statistical Office (CSO) noted that in 2024, this country’s exports to the US amounted to $21.04 billion or US$3.1 billion.
Parson further stated that the tariff adds another stumbling block to the competitiveness of T&T’s products, particularly locally manufactured goods exported to Houston, Miami, New York, and North Carolina.
“What we see happening is a lot of the diaspora in these countries depend on the locally manufactured goods that are exported into the US, and this will definitely reduce our local competitiveness for sure, not only energy and chemical items but also locally manufactured goods,” Parson emphasised.
He noted that while T&T and Guyana were slapped with a 15 per cent tariff, the rest of Caricom remained at the ten per cent mark.
“This is really unfortunate and unfair, and I hope the Government can reach out to the US foreign affairs to see if the additional five per cent can be reverted,” he said.
Former minister in the Ministry of Finance Brian Manning also described the move as troubling, saying it not only makes T&T’s exported goods less competitive in the US market but also limits the country’s ability to earn foreign exchange from international trade.
“That should be concerning to everyone because exports are the main way in which we generate foreign exchange outside of the energy sector,” he said.
“So it would negatively affect our diversification efforts and also the areas of industry and export, especially manufacturing. I would ask that the Minister of Foreign Affairs begin discussions and negotiations with the US Government, as several other countries have done so, so that we can be removed from this tariff list. It’s something that’s extremely vital to the economy of Trinidad and Tobago,” Manning added.
Contacted for comment Trade, Investment and Tourism Minister Satyakama “Kama” Maharaj reaffirmed that Government is currently looking into the situation.
James: It could be seen as a form of economic bullying
Meanwhile, political analyst Dr Winford James said the imposition of the tariff could be seen as a form of “economic bullying”.
“It could be seen as they (the US) are perhaps using their economic and perhaps their military power to enrich their country. You could see that, and this is, of course, a kind of economic bullying that appears to be taking place.
“You bully small countries, weak countries, both economically and militarily. I may be wrong, but that’s how it seems to me.
“And the question is, is there a way for countries like Trinidad and Tobago to bargain, to negotiate? How do we get them to either reduce the tariff or eliminate the tariff? Or is it that they have the power economically and militarily, and it’s either you pay the tariffs or you don’t, and you don’t do trade with us—that’s what it’s saying?” he asked.
James further asked whether there is a limit for the tariff.
“The question is, what is the limit? If Trump decided to charge 25 per cent, 30 per cent tariffs … And I’m saying there must be a limit to that. You can’t keep raising your tariffs, and you’re adding tariffs to what is already there, to taxes on goods already there. You can’t keep doing that because there comes a point in time when we simply cannot go on that way,” James stated.
Another question he said that needs to be asked is whether T&T now needs to look at other markets to sell its goods, such as South America and Latin America.
English (US) ·