Chamber of Commerce Warns of Potential Trade Impact Amid Global Tariff Shifts

The Saint Lucia Chamber of Commerce has raised concerns over the potential fallout from recent tariff threats by US President Donald Trump against key trading partners.

Earlier this week, Trump agreed to temporarily hold off imposing 25 per cent tariffs on Canada and Mexico, averting an immediate trade war. However, a 10 per cent tariff on Chinese imports has already come into effect.

With Saint Lucia heavily reliant on imports, the Chamber of Commerce is closely monitoring how these developments could affect both the cost and availability of goods entering the island.

“We live in a very small, open economy, extremely trade dependent. A lot of our goods, from food right down to construction material, come from the US, and of course, we are watching very closely,” Executive Director, Brian Louisy said in an interview.

He warned that rising tariffs could drive up the cost of imported goods, directly impacting both businesses and consumers. Beyond higher prices, he also expressed concerns about potential supply chain disruptions as companies adjust their purchasing and shipping strategies in response to the new tariffs.

“We think that there may be some implications for availability and supply chain disruptions that may occur because people start to change their shipping and purchasing patterns,” Louisy said. “If the cost of goods continues to rise and the taxes rise, it gets right back to the consumer.”

The Chamber believes that collaboration between the private sector and the government is key to mitigating these challenges. Louisy stressed the importance of dialogue and consultation, both of which the Chamber has advocated for over the years. 

“We have always been very forthright in expressing our views on different government policies and actions, and we are very keen on working with the government,” he said.

Louisy also welcomed recent decisions such as the Ministry of Agriculture’s approval of chicken imports from Brazil. The Chamber has long supported such changes.

“We need to applaud the Ministry of Agriculture for being very clear, very careful in ensuring that all sanitary, health, and quality implications were looked at,” he said, adding that Saint Lucia could even see a reduction in the price of chicken from that market.

Beyond shifting trade relationships, Louisy discussed how the Chamber and its members are actively working to strengthen supply chain resilience. 

Last week, it hosted a workshop focused on inventory management and improving supply chain operations to address these very issues. In addition, the executive director highlighted the Chamber’s ongoing engagement with the Customs and Excise Department, as well as the Saint Lucia Air and Sea Ports Authority (SLASPA), to ensure smoother operations and faster movement of goods into the country.

“We are pleased to see SLASPA moving decisively to improve port operations, including the removal of unused equipment and expanding storage for containers and truckers,” he explained. “However, we think there’s room for more intense action. Efficiency at the port is crucial for us, given how much we rely on imports. Any inefficiency at the port acts like a tax on the country.”

Despite the challenges, Louisy remains optimistic that collaborative efforts, combined with effective action, will help mitigate potential disruptions in the future. 

“We think that if there’s tighter attention to operational details and strategic planning for the short and medium term, there could be great improvements at the port,” he said. “These measures, along with the collaboration between the government and the private sector, will help to ease supply chain challenges and reduce the added costs for consumers.”