TRINIDAD-Energy chamber warns additional tariffs could affect market space for local producers.

PORT OF SPAIN, Trinidad, CMC—The Energy Chamber of Trinidad and Tobago says that while the United States market is “significant” to the country, over 95 percent of its exports comprise just a handful of energy-related commodities.

The Chamber noted that over the past two weeks, global news has been dominated by international trade and the impact of tariffs introduced, which the United States then partially removed.

It said businesses and government have been scrambling to understand the implications of the tariffs and how to respond.

Imports into the United States from most countries in the world, including Trinidad and Tobago, are now subject to a new 10 percent tariff with some exceptions. President Donald Trump announced far-reaching new tariffs on nearly all US trading partners, a move economists and other traders say is designed to dismantle much of the global economy’s architecture and trigger broader trade wars.

“The US export market is significant to Trinidad and Tobago, accounting for about 30 percent of T&T’s exports. Over 95 percent of T&T’s exports to the USA comprise just a handful of energy-related commodities: crude oil, LNG, methanol, ammonia, fertilizers (urea and UAN), and iron & steel.

“Crude oil and LNG and some fertilizer imports are exempt from the tariffs, but the other commodities are subject to the 10 percent tariff and, in some cases, higher commodity-specific tariffs,” the Chamber said.

While the 10 percent tariff is applied across the board and paid by the importer, there may still be some implications for Trinidad and Tobago exporters.

“Domestic producers in the US are not subject to the tariffs, while there may also be imports from certain countries that are exempt. This could include Mexico and Canada, with tariffs on some imports operating under the United States–Mexico–Canada Agreement (USMCA), and potentially Russia (where no tariffs have been listed).

“The case of Russia may be significant for Trinidad because they are a major exporter of ammonia. This could mean that Trinidad-produced commodities are less competitive in the US market.”

It recalled that when Point Lisas was initially established and expanded, Trinidad and Tobago was considered a low-cost producer based primarily on affordable natural gas.

“This is no longer the case due to both higher domestic gas prices and the fact that plants are running below capacity. This means that there is a danger that Trinidad exporters could be squeezed out of the market once additional tariffs are levied if there are other sources without tariffs. Companies are carefully monitoring the situation,” the Chamber added.