Prime Minister Drew Challenges US Tariff Decision Amid Massive Trade Deficit

Prime Minister Dr. Terrance Drew has strongly criticised the United States’ decision to impose a 10 percent tariff on imports from Saint Kitts and Nevis, citing the nation’s significant trade deficit with the United States as a compelling reason to reconsider the measure. Speaking on the 2nd April edition of The Roundtable, Dr. Drew urged for fairer trade treatment, warning that the proposed tariffs could severely burden the local economy and raise the cost of living for residents.

According to figures from the Comptroller of Customs, Saint Kitts and Nevis imported goods worth EC$754,029,809 from the United States in 2024. In stark contrast, the country’s exports to the U.S. totalled just EC$23,901,046.15—resulting in a trade deficit of more than EC$730 million. Dr. Drew stressed that this imbalance underscores the disproportionate nature of the new tariffs.

“The United States benefits much more from trading with the Caribbean region than the Caribbean region does with the United States of America,” said Dr. Drew. “Unlike other regions which have a surplus with the United States in terms of trade, such as Canada and Mexico, we have a deficit.”

The prime minister also placed the issue in a regional context, noting that the Caribbean Community (CARICOM) collectively faces a US $54 billion trade deficit with the United States. He argued that such trade imbalances reflect long-standing structural inequalities and called for a reassessment of how the U.S. engages economically with small island nations.

Dr. Drew maintained that the new tariffs were unjustified, especially for a country like Saint Kitts and Nevis that already imports far more than it exports. “Saint Kitts and Nevis has a strong case to make when it comes to tariffs. The evidence shows that we don’t deserve these tariffs, which could increase the cost of living for our people,” he said.

The Government of Saint Kitts and Nevis is expected to continue engaging diplomatically on the issue while advocating for a more equitable and mutually beneficial trade framework with the United States.

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