Trump’s Tariffs ‘Very Bad News’ For The Bahamas

Potential for serious impact on the cost of imported goods

The BCCEC notes with deep concern, the US governments application of tariffs on goods from China, Mexico and Canada and the tariffs applied by those countries in response.

Given that the US is by far our largest trading partner, these tariffs have the potential to seriously impact the cost of some goods which are imported. The extent to which we will be impacted depends on the level of goods imported from the US which emanate from the countries on which tariffs have been applied. News reports indicate that the classes of goods likely to be most impacted include clothing, some agricultural products, electronics and spirits. It is very possible that we will see higher prices on these products in the coming months if the trade wars are allowed to proceed. With Bahamians already struggling with inflation and the high cost of living, this is definitely very bad news. Anecdotal reports also suggest that US agricultural may also be negatively impacted by their new immigration policy, which may impact products grown in the US, further exacerbating the situation.

The BCCEC has been working to identify other possible import markets

The BCCEC has been working to identify other possible import markets which would allow Bahamian merchants to circumvent US middlemen and help bring down the cost of living, even prior to the implementation of these tariffs. We are also keen to see the development of local industries to reduce the reliance on external providers, especially with regard to food products. This will take serious commitment from the government and local producers.

In recent months, the government, through The Trade Commission, has been working to identify alternative market from which certain goods can be imported. The BCCEC is also working to assist it’s members connect with providers all over the globe. Our members in the logistics and cargo businesses stand ready to assist with access to new markets.

It is our hope that the results of this work can be used to help make the necessary market connections. In any event, we will continue to monitor this developing situation and provide what ever assistance we can.

Source: Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) Statement