The many Virgin Islands businesses that use Tropical Shipping could be hit hard by United States President Donald Trump’s tariffs and other policies, the company has warned.
In testimony before the US Trade Representative last week in Washington DC, Tropical CEO Tim Martin pleaded for a rethink, claiming that his company and the Caribbean in general would be badly impacted by Mr. Trump’s aggressive trade tactics.
Mr. Martin said the White House’s moves, including plans to impose a $1 million flat fee on Chinese-built vessels entering US ports, could even put Tropical Shipping out of business.
The testimony came shortly before Mr. Trump again ratcheted up tariffs on foreign imports to the US yesterday, dubbing it “Liberation Day” as he accused competitors of unfair trade practices.
“The US shipping industry serving the Caribbean cannot absorb the additional costs of the proposed port fees, which would have significant economic consequences,” Mr. Martin said. “Instead of strengthening American competitiveness, these port fees would push American-owned carriers like Tropical out of business.”
Dominant shipper
Tropical Shipping, which has an office in the VI but operates out of the Port of Palm Beach in Florida, said nine of its 19 vessels were built in China since 2000.
Mr. Martin warned that under the proposals, freight rates would double, forcing Caribbean firms to buy outside the US at greater cost.
The firm said it transports some 50 percent of goods imported to the Caribbean and Central and South America, including items such as groceries, medicine, poultry, agriculture products, building materials and hurricane-relief supplies.
Mr. Martin asked the US Trade Representative to exempt US-owned-and-headquartered vessel operators from the proposed fees and to only apply them to ships built in China in the future.
“I urge this committee to consider exemptions or policy adjustments that ensure American-owned shipping companies are not unfairly penalised for decisions made years before these tariffs, thereby ensuring a fair and equitable policy,” Mr. Martin said.
The tariffs would have a knock-on impact across the Caribbean, according to a statement from Tropical Shipping.
“The proposed actions will create a multiplier effect across the American shipping industry and the Caribbean, including American businesses that export to the Caribbean and the US supply chain, as well as our Caribbean counterparts and consumers buying the products we ship,” the statement claimed.
China’s advantage?
The firm said Chinese companies would take advantage of the situation and would soon come to dominate Caribbean trade.
“Tropical expects the unintended consequence will be that America’s third border, the Caribbean Basin, will become China’s new ‘red river” — a trading route dominated by Chinese carriers,” the statement noted.
The company also claimed the region depends on its reliable shipping times and 60 years of experience.
“Tropical Shipping supports each of the 30 port communities we serve through donations to education and youth development programmes,” the company added. “In 2024, we donated more than $500,000 to organisations throughout the Caribbean and Central and South America.”
Security risks?
The firm said the planned changes could also bring security risks.
“Tropical vessels have participated in the US Southern Command’s ‘Tradewinds’ exercises, which have been described as ‘key to maintaining regional security, safety and prosperity throughout the Caribbean Basin,’” according to the statement.
