Basseterre, St. Kitts. March 6, 2025. Senior Minister responsible for Foreign Affairs, Trade et al., Dr. the Hon. Denzil Douglas, has confirmed that the ongoing trade tensions stemming from tariffs imposed by the Trump administration will have lasting economic effects on St. Kitts and Nevis and the broader Caribbean region. Minister Douglas made this statement during a Labour Party government press conference earlier today (March 6).
While acknowledging the potential economic impact, he noted that the global response to these tariffs could provide some level of economic cushioning.
Minister Douglas highlighted that over the years, St. Kitts and Nevis has benefited from strong trade relationships with the United States, citing historical initiatives such as the Caribbean Basin Initiative established under President Ronald Reagan. This initiative previously provided favorable trading conditions for Caribbean nations, including tariff-free access to the U.S. market for certain goods.
However, because the trade landscape has since changed dramatically, the latest tariffs are expected to increase the cost of goods imported into St. Kitts and Nevis, Dr. Douglas noted. This is unavoidable since most imports come through major U.S. ports like Miami, St. Thomas, and New York.”
“What it means, therefore, is that it is expected for us to pay higher prices for the goods that would have been imported through any port or from ports of origin where increased tariffs would have been placed by the announcements made by President Trump within 100 days of taking office,” Douglas explained.
The Trade Minister pointed out that the Covid-19 pandemic would have already exacerbated global supply chain disruptions and with the new tariffs in place, he expects further inflationary pressure, negatively affecting the cost of living in St. Kitts and Nevis.
“We have already been impacted because of Covid-19, where it takes much longer for goods to arrive to our ports, much longer because there has been disruption in the supply trade routes as a result of shortages from COVID, and now we are going to experience, I would think, maybe longer periods for goods to arrive, the cost of these goods would go up, and then of course it will impact negatively on the cost of living for our people here in St. Kitts and Nevis,” the Minister expounded.
Despite these concerns, Minister Douglas remains hopeful that international pressure could mitigate some of the economic fallout. He referenced Canada’s strong pushback against the tariffs, which led the U.S. to suspend increased tariffs on Canadian goods for an additional month. There is speculation that this suspension could be extended further as the Canadian government has made it clear that it will not allow its citizens to bear the financial burden.
He gave the assurance that the Labour Party government will continue to closely monitor developments to assess the potential ramifications and opportunities for the local economy, as the global trade climate continues to shift.