Caribbean compelled to reconsider US trade ties

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The Caribbean hasn’t set out to untie its trade dependence with the United States (U.S.). They are being compelled to do so.

For generations, Caribbean importers and consumers have initially sought the American market. They have done so for reasons of preference besides practicality. The U.S. is in proximity, so shipping is more convenient, and it tends to move with quicker deliveries. Commercial routes have been established. Refrigerated cargo, besides container services, is structured to support this trade movement. For food, medicine, household supplies, machinery, and construction materials, the U.S. market has long been the preferred first choice.

For many years, the U.S. has enjoyed a significant trade surplus with Caribbean countries. The surplus remains overall, notwithstanding the more recent oil & gas exports from Guyana and Trinidad & Tobago. Even then, the U.S. stands to benefit from supplies from nearby, reliable & friendly countries, such as those that provide essential goods and services, which can help maintain economic stability and strengthen diplomatic ties.

The Caribbean has therefore been a loyal market. This is precisely the reason why recent developments deserve sober reflection. No sensible government in the region would wish to weaken ties with a country that has long been key to Caribbean commerce. Recent U.S. trade measures are now compelling governments, businesses, and consumers in the Caribbean to reevaluate once-settled assumptions.

Caribbean compelled to reconsider US trade ties

3 pressures are driving the change

The first is the continuing tariff burden on the Caribbean to the U.S. The sweeping tariff action announced by Washington on Thursday, 2 April ’26, was later narrowed by the U.S. Supreme Court, which struck down part of the emergency-based approach. The resulting consequences remain serious for many Caribbean producers. As of April ’26, most Caribbean goods still face a 10% baseline import duty under Section 122 of the Trade Act of ’74. It may appear modest when viewed from a large economy standpoint. It is, however, not modest for small states exporting rum, processed foods (especially preparations), personal care items, building products, and other niche goods whose competitiveness depends on very tight margins.

 

Roshan Abayasekara
Roshan Abayasekara
Was seconded by Sri Lankan blue chip conglomerate - John Keells Holdings (JKH) to its fully owned subsidiary - Mackinnon Mackenzie Shipping (MMS) in 1995 as a Junior Executive. MMS, in turn, allocated Roshan to its then principal, P&O Containers regional office for container management in the South Asia region. P&O Containers employed British representatives whom Roshan then understudied. During the ‘90s, Roshan relocated to Dubai, UAE, where Roshan specialised in logistics. More recently, Roshan acquired a Merit award in a postgraduate diploma in Business Administration from the University of Northampton, UK.

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