KINGSTON, Jamaica, CMC – Industry Minister Aubyn Hill says Jamaica is not immediately affected by the ongoing tariff struggle between the world’s largest economies, the United States (US) and China.
He disclosed while responding to questions regarding the new tariff measures implemented by the US during Wednesday’s post-Cabinet press briefing held at Jamaica House.
His statement follows the recent announcement by US President Donald Trump of a sweeping set of new tariffs, including a 10 percent baseline tariff on nearly all imports entering the US and reciprocal tariffs on various countries.
On Wednesday, Trump announced a 90-day pause on tariffs for more than 75 trading partners except China, which will see a 125 percent hike in levies on products entering the US.
According to Hill, while Jamaica is not the target of either of the economic powerhouses, “we have to be very aware and nimble.”
He noted that the Ministry of Foreign Affairs and Foreign Trade is reviewing the necessary documentation to ascertain whether the Caribbean Basin Initiative (CBI) will still apply.
Under the CBI, products from most Caribbean countries enter the US under preferential arrangements.
“The CBI, we are not clear yet; we don’t have the documentation that tells us yes the CBI is going to continue… or no, CBI has gone away and the 10 percent tariff [will apply] across the board.
“If that happens, we have to say, ‘Who else is in the 10 percent category’… and for those in that 10 percent category, do they sell the same stuff that we sell to the United States? Some may, but they may be located in Africa or Asia; we have a competitive advantage based on geographic location,” Hill reasoned.
He also expressed confidence in Jamaica’s ability to overcome challenges if the CBI is no longer in place for Caribbean countries.
“We must find the ways, which is what we, as Jamaicans, have done in the past 10 years. We have been able to overcome the pandemic; we didn’t raise taxes; we didn’t borrow any more money to do it, and we’ve had, through that entire period, 10 consecutive budgets without any raising of taxes,” Hill said, adding that the Government is being strategic in navigating this uncertain time while keeping the benefits of Jamaicans at the forefront.
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