BY NAN Business Editor
News Americas, WASHINGTON, D.C., Fri. Aug. 1, 2025: Trump tariffs are back – and this time, two Caribbean nations are feeling the heat.
U.S. President Donald Trump announced new 15% tariffs on goods from Guyana and Trinidad and Tobago as part of his escalating trade offensive targeting dozens of countries. The move has sent shockwaves through the region’s manufacturing and export sectors, particularly among businesses already struggling with supply chain costs and market uncertainty.
In a sweeping move that caught many small economies off-guard, the Trump administration on Thursday re-imposed tariffs on goods from over 70 countries, including Guyana and Trinidad and Tobago, as part of a renewed effort to close America’s trade deficit. Effective immediately, both Caribbean Community (CARICOM) countries will face a 15% reciprocal tariff on their exports to the U.S.
The new tariffs come just weeks after a temporary 90-day reprieve on harsher duties, including a previously proposed 38% rate on Guyana, which had sparked diplomatic backlash. While the rollback to 15% softens the blow, the impact remains severe – particularly for niche exporters in Guyana’s timber and manufacturing sectors and Trinidad’s energy and petrochemical producers.
“This is going to have devastating effects on us,” Howard Bulkan, a Guyanese exporter who sells over 60% of his company’s wallaba roof shingles to U.S. buyers told Demerara Waves. “We’ve been absorbing the 10% tariff since earlier this year. A 15% rate is not sustainable. We’ll now have to consider shifting to European markets.”
A Blow To Value-Added Exports
For Guyana, the tariff hike comes at a precarious time. While the country is experiencing rapid GDP growth driven by offshore oil production, its non-oil sectors have been working to diversify and expand exports of value-added goods like wood products, furniture, and agro-processing.
Industry leaders say the U.S. tariffs threaten to undercut those efforts. “That’s going to hurt,” said Ramsey Ali, President of the Guyana Manufacturing and Services Association (GMSA) told Demerara Waves. “We’ll be meeting to assess the fallout, but this clearly impacts competitiveness.”
The U.S. had long been a zero-duty market for many of these products. With freight costs and logistics already straining Caribbean exporters, the added 15% tariff could result in a compounded cost increase of 20–25%, potentially pricing them out of the market.
In Trinidad and Tobago, where petrochemicals, ammonia, and manufactured goods make up the bulk of exports to the U.S., the new tariff could raise costs across supply chains – affecting trade with U.S.-based industrial and construction sectors.
Political Optics vs. Trade Realities
Trump’s move – just a day before his August 1 deadline for trade deal renegotiations – is being billed by the administration as a “reciprocal tariff adjustment.” But critics say it disproportionately harms smaller economies with limited trade leverage and minimal market intrusion.
“The tariff math makes no sense,” said Bulkan. “We’re being penalized for oil exports, even though our wood products aren’t competing with U.S. goods.”
Guyana Vice President Bharrat Jagdeo confirmed ongoing talks with the U.S. Trade Representative, saying Guyana remains hopeful that the duty could be lowered to 10% through bilateral negotiations.
“We’re happy it’s not 38% anymore,” Jagdeo told Demerara Waves. “But we are still working to bring it down further.”
Risk of Market Realignment
The longer-term risk, analysts say, is that Caribbean exporters may permanently pivot away from U.S. markets – opening the door for China, Europe, or South American buyers to step in.
Several GMSA members are already eyeing European buyers as a fallback. But switching markets isn’t simple – it requires new certifications, trade relationships, and logistics chains that many small and mid-sized exporters are ill-equipped to build quickly.
For now, the region’s manufacturers are scrambling to recalculate costs, renegotiate contracts, and brace for a rocky export season.
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