Govt engaging with US partners on 38% reciprocal tariffs – Finance Minister

The surprise inclusion of Guyana on a list of countries facing reciprocal tariffs from the United States (US), a measure that if implemented could see the cost of doing business increase, has resulted in the Government of Guyana reaching out to its partners in the US, seeking answers.
On Wednesday, US President Donald Trump announced Global Reciprocal Tariffs that will be implemented against a number of countries, on all goods that the United States imports. Guyana is among several Caribbean and South American countries on the list.

According to a chart the US President read from, Guyana will have a 38 per cent reciprocal tariff rate applied to its exports to the US, in response to the 76 per cent tariff that Guyana was listed as imposing on US products.
In an invited comment, Senior Minister in the Office of the President with responsibility for Finance Dr. Ashni Singh indicated that they are in contact with their American partners on the issue.
“The Government of Guyana has taken note of the reciprocal tariffs announced by the US Government earlier today. Our government is closely engaged with our US partners to better understand the issue and have it addressed as appropriate,” Dr Singh said.
Tariffs are a tax imposed by the government on imported goods from other countries. They are usually aimed at promoting and safeguarding domestic industries in the country doing the importing, by limiting the proliferation of foreign goods on their domestic market.
Since President Trump took office earlier this year, tariffs have been a trending issue. This was especially so in the Caribbean when the US government announced last month that tariffs would be imposed on China-made ships/vessels, a measure which would impact trade in Guyana and the Caribbean Community (CARICOM) region.
Based on a previous BBC report, President Trump had said that he was planning “reciprocal tariffs” on various nations as he aims to reshape the US’s global trade relationships.

The US President, the article stated, did not say which countries could be targeted but suggested it would be a broad effort that may also help solve US budget problems.
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 Dr Bharrat Jagdeo, amid plans by the US Government to impose tariffs on imports from several countries including Canada, Mexico and China.
In light of this potential tightening of global trade, Jagdeo had told reporters at one of his press conferences that the Government is paying attention to the issue, which could see the potential tightening of global trade.
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.
US’s commitment
It was only last week that US Secretary of State Marco Rubio visited Guyana, during which he hailed Guyana as one of the most exciting places in the world, emphasizing its potential for transformational growth and reaffirming the US’s commitment to supporting its future.
According to Rubio, this transformation will not only bring prosperity for the country but also the lives of children, and future generations, which he says will look completely different in five to 10 years under current leadership.
The United States has long been Guyana’s largest trading partner, with accumulated trade of more than US$3.9 billion recorded in 2022. In fact, the US is ranked as Guyana’s number one export and import destination, with export and import relations pegged at some US$2.7 billion and US$1.2 billion respectively in 2022. And in 2023, US-Guyana trade exceeded US$4.6 billion.