Deandrea Hamilton
Editor
Turks and Caicos, May 2, 2025 – In a major diplomatic victory, CARICOM member states, including Barbados, have successfully negotiated an exemption from newly proposed U.S. tariffs that threatened to disrupt vital shipping routes and drive up the cost of living across the Caribbean.
The breakthrough comes after weeks of coordinated lobbying by regional governments, private sector stakeholders, and shipping companies, following the Trump administration’s plan to impose multimillion-dollar port fees on vessels made in China — the type commonly used to service Caribbean trade routes.
Prime Minister Mia Amor Mottley, who currently chairs CARICOM, confirmed that the U.S. Trade Representative (USTR) has granted the region an exemption from the tariffs. The move spares CARICOM nations from what many feared would have been a crippling blow to regional economies already grappling with global supply chain challenges.
“This is testimony to what we can achieve when we work together,” said Mottley. “The impact of these fees would have driven up the cost of living and hindered access to essential goods. By speaking with one voice — governments, business leaders, and labor across our countries — we have protected the interests of our people.”
The U.S. had earlier announced a 10% reciprocal tariff on exports from several Caribbean nations, including The Bahamas, Jamaica, Trinidad and Tobago, Haiti, and others. This was part of a broader policy shift under President Trump aimed at countering what Washington considers unbalanced trade practices by applying equal tariffs to countries that levy duties on American goods.
However, the newly proposed port fees on Chinese-built ships were viewed as disproportionately harmful to the Caribbean, where such vessels are essential to maintaining trade links. According to Gervase Warner, chairman of the CARICOM Private Sector Organisation (CPSO), these fees — exceeding US$1 million per U.S. port call — would have increased shipping costs significantly and caused inflation, shortages, and logistical delays.
Warner praised Mottley’s leadership and credited the collective regional response for swaying U.S. decision-makers. “We are grateful that the USTR recognized the devastating impact this would have had and acted accordingly,” he said.
The exemption highlights the power of unified regional diplomacy and underscores the importance of sustained engagement with major international partners.
“This success,” Mottley said, “goes beyond the immediate moment. It stands as a call to deepen our cooperation and defend our region’s interests, now and in the future.”
