it seems as if Caribbean economies can never catch a break; storms appear to be always looming, whether from natural disasters or policy decisions.
On the horizon is a potential economic maelstrom—the proposed US levy on Chinese-built ships. This port fee plan would charge operators between $500 000 and $1 million per US port call if they have Chinese-made vessels in their fleet, regardless of ship size.
So severe could be the impact that Prime Minister Mia Mottley, the current Chair of the Caribbean Community (CARICOM), has already urged United States President Donald Trump to exempt the region from the tax. She warns that it could severely disrupt regional commerce, inflate import costs, and destabilise supply chains.
The issue was also a key agenda item when Mottley met US Secretary of State Marco Rubio in Jamaica on Wednesday. She stated: “What we potentially face with the announced cess—levy, whatever you want to call it—on ships made in China will have serious and deleterious consequences for commerce not just for Barbados, not just for the Caribbean, but also for Florida.”
Earlier this week, the Atlantic Council and Tropical Shipping hosted a dialogue session with CARICOM Ambassadors and the CARICOM Private Sector Organisation (CPSO) in Washington, DC, to assess the potential fallout for regional shipping.
CPSO CEO and Technical Director Dr Patrick Antoine highlighted the gravity of the situation, stating that the Caribbean impact could be far worse than the disruptions seen during COVID-19, when shipping costs temporarily skyrocketed.
