Barbados News – CARICOM Secures Tariff Exemption in U.S. Shipping Policy Shift

_________________________________________________

_________________________________________________

Barbados and other CARICOM nations have successfully secured an exemption from a proposed United States tariff plan that threatened to drive up the cost of goods and disrupt shipping to the region.

Following weeks of unified lobbying by CARICOM governments, private sector leaders, and regional stakeholders, the United States Trade Representative (USTR) has ruled that the Caribbean will not be subject to new fees—potentially over US$1 million per port call—on vessels constructed in China. These tariffs, if applied, would have had serious consequences for the cost of living and supply chain stability throughout the region.

View Barbados Luxury Properties for Sale

Day Dreamer Villa, Fully Furnished + Apes Hill Golf Resort Membership – Move in Ready

CARICOM Chair and Barbados Prime Minister Mia Amor Mottley hailed the decision as a major victory for regional cooperation. Speaking on behalf of CARICOM, Mottley emphasized that the exemption was a direct result of collective regional advocacy and close collaboration with affected shipping companies and private sector groups.

“This is testimony to what we can achieve when we work together towards a single purpose,” said Mottley. “Had the tariffs been imposed, the region would have faced higher shipping costs, inflationary pressures, and access challenges for critical goods.”

She also extended her appreciation to the U.S. government for recognizing the disproportionate impact such a measure would have had on small Caribbean economies.

View Barbados Luxury Properties for Sale

Expansive Spanish-Style Estate on 10.6 Acres | Fully Renovated | Private Pool | Stables | Prime Location Near Six Roads & Airport

Mottley revealed that she had personally written to then-President Donald Trump, supported by evidence and advocacy from the CARICOM Private Sector Organisation (CPSO), to argue the case against the proposed tariff. The result, she said, is an encouraging example of how coordinated diplomacy can shield the region from external economic shocks.

CPSO Chairman Gervase Warner echoed Mottley’s sentiments, praising the joint efforts that led to the positive outcome. He noted that the original USTR proposal would have severely affected shipping routes between the Caribbean and the U.S., resulting in inflation, product shortages, and widespread logistical issues.

Warner explained that the CPSO had proposed exemptions for short-sea shipping, specific vessel sizes, and certain types of cargo. The final USTR determination, he said, included:

  • An exemption for vessels operating within 2,000 nautical miles of the U.S.–Caribbean corridor (slightly under the 2,750 miles requested).
  • An exemption for vessels under 55,000 deadweight tons and less than 4,000 TEUs (Twenty-Foot Equivalent Units).
  • Specific exemptions for bulk carriers up to 80,000 deadweight tons and special-purpose ships transporting chemicals or liquid cargo.

View Barbados Luxury Properties for Sale

3 Bedroom Beachfront Home “Coral Reef” with Best Beach on Maxwell, South Coast Barbados

He praised the technical leadership of the CPSO Secretariat, led by economist Dr. Patrick Antoine, for their expert submissions and testimony that helped sway the USTR’s decision.

“The priority attention given to this issue by CARICOM Heads of Government, including Prime Minister Mottley’s direct communication to President Trump and the advocacy at the meeting with U.S. Secretary of State Marco Rubio, were instrumental,” Warner stated.

He emphasized the need for continued unity across the Caribbean to tackle other trade-related issues, including the broader implications of U.S. tariffs on CARICOM exports and imports.

“This is not just a win for today but a lesson in how strategic collaboration across governments, businesses, and civil society can protect the interests of our people,” Warner concluded.

View all of our Properties for Sale in Barbados

_________________________________________________

_________________________________________________