Impact on Caribbean trade: Pres Ali among Caribbean leaders hailed after US reverses tariff hike on Chinese Ships

…shipping services laud unified stand taken by Region

In a major move, the United States Government had reversed course on plans to increase tariffs on Chinese-built ships traversing the Caribbean and, by extension, increase fees on containers, a move that has been hailed by US based company Tropical Shipping as a victory for the Region and has prompted praise for Caribbean leaders including President Dr Irfaan Ali.
Since the President Donald Trump led administration had announced increased tariffs on Chinese-built ships, which would have led to container fees hikes and price increases, there had been much agitation in the Region.

Guyana was one such country that had spoken out against this development, with President Ali expressing worry about the impact on trade in Guyana and the Region. Joining other Regional leaders in expressing concerns at the tariffs being proposed by the US Government and the effect that can have on shipping in the Region, President Ali had also assured that these matters will be raised with their US partners.
A key concern has been President Donald Trump’s plan to impose tariffs on China-made ships/vessels, which will impact trade in Guyana and the Caricom region. In an interview, Ali had noted that based on the policy being proposed, once these vessels fall within a certain category they will be charged.
It subsequently emerged that the Caribbean would be exempted from the proposed US surcharges, a decision that has been welcomed by members of the private sector. According to Tropical Shipping, a US based shipping company with an office in Guyana, the win is a significant one since the proposed surcharge would have cost its customers an additional $3000 per 40-foot container load.
The company’s CEO, Tim Martin, lauded the Caribbean region for its relentless advocacy and ensuring that their voices were heard. As a matter of fact, he revealed that a United States Trade Representative member had expressed surprise at the massive response from the region. And among the regional Head of States he singled out for praise was President Ali.

“This is a huge victory for us and the entire Caribbean region that we serve. Our voices were heard. We could not have accomplished this without the relentless advocacy from our Caribbean representatives in Washington, D.C., our customers, and the many organizations that wrote letters to the USTR describing the devastating multiplier effect these port fees would have had on all of us,” he explained.
Other regional leaders who came in for praise were Caribbean Community (CARICOM) Chair and Barbados Prime Minister Mia Mottley, Governor Albert Bryan of the US Virgin Islands and Dr. Patrick Antione of the CARICOM Private Sector Organisation.
The tariff on shipping vessels had also been accompanied by 38 per cent reciprocal tariffs being imposed on US imports from Guyana. This is another area that the government of Guyana has said it would work with the US on addressing.
The Guyana Government has already been engaging the US to ensure that trade relations remain favourable not just between the two countries but the wider Caribbean region. As far back as February, this position had been articulated by Vice President Bharrat Jagdeo, amid plans by the US Government to impose tariffs on imports from several countries including Canada, Mexico and China.
While the US Government had gone ahead with its implementation of a 10 per cent tariff on imports from China, there had been a 30-day delay on the 25 per cent tariff to be imposed on imports from Canada and Mexico. This latter move had brought some level of relief but this was short-lived after President Trump threatened to hit more countries with similar tariffs.