CARICOM Warns U.S. Tariff Hike Could Deepen Economic Strain on Region

The Caribbean Community (CARICOM) Private Sector Organization (CPSO) has issued a sharp warning that the United States’ decision to raise reciprocal tariffs on Trinidad & Tobago’s exports – from 10 percent to 15 percent – could deliver a heavy blow to one of the region’s most trade-dependent economies and disrupt key supply chains.

“Trinidad & Tobago was already the most exposed CARICOM economy under the reciprocal tariff regime,” said Dr. Patrick Antoine, Chief Executive Officer and Technical Director of the CPSO. “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 U.S. manufacturers who rely on our exports for input.”

Antoine added that the new tariff hike reflects a broader erosion of CARICOM’s preferential trade position with the U.S., which has underpinned the region’s economic partnership with Washington for decades.

“In our recent submission to the U.S. review of the Caribbean Basin Initiative (CBI), we highlighted that these new tariffs undermine the preferential access that has long supported our economies. That erosion is now accelerating,” Antoine said.

He emphasized that the tariff hike, combined with the “America First” trade policy, signals an urgent need for coordinated regional action to safeguard competitiveness. Antoine urged leaders to replicate the collaborative approach that previously secured exemptions for China-built ships and short-sea shipping.

“Now is the time to apply that same resolve to protect current trade flows, engage the U.S. on tariff differentials, and position Trinidad & Tobago – and by extension, CARICOM – for long-term strength in an increasingly contested global market,” he said.