The Government of Saint Lucia has outlined a multipronged strategy to mitigate the economic impact of new US tariffs, which threaten to raise import costs and squeeze local businesses and consumers.
At a press briefing on Thursday, the Joint Ministerial Task Force warned of rising prices on US-assembled goods and potential disruptions to shipping, while detailing plans to diversify trade partnerships and strengthen regional alliances.
The new tariffs targeting goods assembled in the US with foreign components are expected to drive up prices for key imports, including machinery, electronics, and processed foods.
Dr Thomas Samuel, trade advisor and task force co-chair, cautioned that while the full effect may not be immediate, Saint Lucians should brace for higher costs.
“Prices are not going to all be immediate … like next week, but what I’m saying to you is that the world as we know it has generally changed for every country,” Samuel said. “And this is not a Saint Lucia issue. This is a global situation.”
A looming proposal to impose steep docking fees on Chinese-built ships calling at US ports could further escalate expenses. If enacted, shipping costs could surge, inflating the price of imported goods.
“So think of… a private sector having to face that, and what that would mean for freight costs and the price of goods,” Samuel noted, though he urged calm, as the measure remains unconfirmed.
To counter these challenges, the government is pursuing high-level diplomatic engagement through lobbying US trade officials and leveraging its embassy in Washington to seek exemptions or transitional relief.
“No one will make our case for us, we have to do that,” Samuel said.
Other measures include:
- Expanding Regional Trade – The task force is prioritising the CARICOM-Dominican Republic Free Trade Agreement to source more goods regionally, reducing reliance on US imports.
- Exploring New Markets – Efforts are underway to boost exports to Canada under the Caribcan duty-free agreement and tap into emerging markets in Latin America and Europe.
- Monitoring Shipping Costs – Authorities will collaborate with Caricom at next month’s COTED (Council for Trade and Economic Development) meeting to assess the potential shipping levy and explore alternative logistics routes.
The Task Force, co-chaired by director of international trade Ricky Jn Baptiste, will present finalised recommendations to Cabinet, with updates to the public as developments unfold.
