To say the international community is in turmoil since the latest US import tariffs were proclaimed would be an understatement. Several countries have already announced retaliatory steps and more are expected to follow.
Barbados Prime Minister Mia Mottley, in her capacity as chair of the Caribbean Community Caricom, over the weekend issued a statement (see related story) that paints a grim picture of the impact these developments will have on the region. Refusing to “sugar coat” it, she said these are among the most challenging times since the majority of members gained independence and spoke of the most difficult period the world has faced since World War II.
The prime minister expressed praying she is wrong and that cooler heads will prevail across the world, and leaders come together in a new sense of cooperation, to look after the poor and the vulnerable of this world, and to leave space for the middle-class to chart their lives, to allow businesses to get on with what they do and to trade. However, she “truly” has no confidence this will happen.
Much will also depend on the reaction to President Donald Trump’s protectionist policies. A full-blown trade war is ultimately not in the interest of anyone, including the American people.
As reported elsewhere in this edition, the Dutch government is calling for a coordinated and measured response from the European Union (EU). Their emphasis seems to be on damage control at this point.
Barbadian leader Motttley specifically mentioned the possibility of US $1 million to $1.5 million levy on all Chinese ships entering US harbours. While there is a growing use of Jamaica as transhipment terminal for container vessels with freight for the islands, most of their goods still go through Miami.
St. Maarten/St. Martin have a relatively large quantity of Dutch and French consumer products coming both by air and sea, the latter either direct or via other regional cargo ports. Increasing their share on the local market could help spell a bit of local relief in terms of mitigating the expected price hikes at least somewhat.
