The Caribbean region stands at a critical crossroads as new US trade policies introduced during the Trump administration continue to reverberate through its economies. Leaders across the islands are expressing concerns over increased tariffs and shifting trade dynamics that threaten the stability of their markets.
During the Jamaica Economic Forum 2025, Elaine Morrison, CEO of Caribbean Finance Group, highlighted the precarious position of the Caribbean’s import-dependent economies. “With the US implementing higher tariffs on essential goods, we’re facing potential inflation spikes that could undermine our economic progress,” Morrison stated.
The renegotiation of key trade agreements, including the transformation of NAFTA into the USMCA, exemplifies the administration’s hardline approach to trade. Morrison emphasized that these changes could have downstream effects on Caribbean exports, making it harder for local businesses to compete in the US market. “Our export sectors are already striving to expand, and additional tariffs could stifle growth and innovation,” she added.
Furthermore, the administration’s move to impose substantial tariffs on imports from Canada, Mexico, and China poses a significant threat to Caribbean economies that rely heavily on US trade. These policies aim to protect domestic industries but may inadvertently disrupt the delicate balance of Caribbean trade flows. Morrison advocates for regional diversification as a strategic response to these challenges.
“Strengthening intra-Caribbean trade and exploring new markets beyond the US can provide a buffer against external economic shocks,” Morrison suggested. She underscored the importance of revitalizing Caricom initiatives and forging stronger trade ties with countries like Mexico, which is also targeted by US trade policies.
Other regional business leaders echo Morrison’s apprehensions. Michael Thompson, Vice President of Island Holdings, discussed the destabilizing impact of US sanctions on neighboring Venezuela, a vital trading partner for several Caribbean nations. “The interconnectedness of our economies means that geopolitical tensions can have swift and severe consequences,” Thompson explained.
Thompson remains cautiously optimistic, believing that proactive risk management and regional cooperation can mitigate some of the adverse effects. “While the landscape is challenging, there are opportunities for resilience and growth if we act collectively,” he noted.
In Trinidad and Tobago, where the energy sector is pivotal, uncertainties surrounding global energy markets and US foreign policy add another layer of complexity. Thompson warned that ongoing economic instability in Venezuela could disrupt energy supply chains, affecting regional energy security and economic stability.
Amid these economic headwinds, some leaders see avenues for growth. Laura Bennett, CEO of Caribbean Tourism Board, highlighted the resilience of the tourism sector as a key driver of economic stability. “Tourism remains our strongest export and is less susceptible to trade tariffs. Increasing US visitor numbers could provide a much-needed boost to our economies,” Bennett remarked.
Bennett also pointed to advancements in renewable energy and technology as potential growth sectors. “Investing in sustainable energy solutions and leveraging digital innovations can open new pathways for economic development, reducing our dependence on traditional markets,” she added.
Environmental sustainability remains a critical concern, especially with the US withdrawal from global climate agreements under the Trump administration. David Clarke, Managing Director at Green Caribbean Solutions, emphasized the importance of maintaining high environmental standards to attract international investment. “Sustainability is not just a regulatory requirement but a strategic advantage in today’s global economy,” Clarke stated.
Clarke highlighted ongoing green initiatives within the Caribbean, showcasing how regional companies are leading the charge in renewable energy and sustainable practices. “By prioritizing environmental responsibility, we can enhance our competitiveness and ensure long-term economic resilience,” he explained.
The collective response from Caribbean leaders underscores a commitment to adaptability and regional solidarity in the face of external economic pressures. By diversifying trade partners, investing in sustainable industries, and strengthening regional cooperation, the Caribbean aims to navigate the complexities introduced by shifting US policies.
As the region moves forward, the focus remains on building a more resilient and self-reliant Caribbean economy capable of weathering global uncertainties and seizing new opportunities for growth.
