Caribbean Trade Law and Development

Author: caribbeantradelaw

  • Caribbean Trade & Development News Digest – March 1-7, 2026

    Caribbean Trade & Development News Digest – March 1-7, 2026

    Dear Reader,

    Welcome to our Caribbean Trade & Development News Digest for the week March 1 – 7, 2026!

    📌THIS WEEK’S HIGHLIGHTS

    Below are this week’s headlines!

    US Treasury Secretary Scott Bessent has stated that the 15% global tariff under section 122 of the Trade Act, 1974, will be implemented some time in the coming days.

    A coalition of 24 U.S. states filed a lawsuit arguing the tariff exceeds presidential authority and infringes on Congress’s control over trade policy.

    A U.S. trade court ordered the government to start refunding more than $130 billion in tariffs previously ruled unlawful. Thousands of companies have filed for refunds.

    🌴CARIBBEAN AND HEMISPHERIC TRADE STORIES

    Minister: Becoming part of Mercosur would benefit T&T

    Daily Express: Trinidad and Tobago’s potential membership in the South American trade bloc Mercosur (short for Spanish Mercado Común del Sur, or Southern Common Market) could bring significant benefits, according to Foreign and Caricom Affairs Minister Sean Sobers. Read more

    Trump threatens Cuba again, says island nation may face ‘friendly takeover’

    Al Jazeera: United States President Donald Trump has signalled that his administration is still pursuing a government overthrow in Cuba even as the US-Israeli war on Iran enters its second week. Read more

    Can Belize Grow Its Cacao Industry Into a Major Export Sector?

    Greater Belize Media: The government of Belize has launched the National Cacao Committee, a new body tasked with driving growth in the country’s cacao industry. Read more

    Belize Records Modest Growth in Niche Agricultural Exports to Asia
    Business, Companies & Organizations

    LoveFM: Belize is gaining encouraging signals on two economic fronts tonight, modest but steady growth in niche agricultural exports to Asia and renewed international attention as a competitive retirement destination in the Caribbean. Read more

    Afreximbank raises CARICOM financing cap to $5 billion to accelerate regional transformation

    Afreximbank: Pan African Multilateral Bank, African Export-Import Bank (Afreximbank), has announced a major expansion of its engagement with the Caribbean Community (CARICOM), increasing its regional financing limit from US$3 billion over the next four years. Read more

    Worrell: Barbados can’t get cheaper oil deals in CARICOM as regional trade still in US dollars

    Barbados Today: Former Central Bank Governor Dr Delisle Worrell has warned that Barbados should abandon any expectation of getting cheaper oil deals from its Caribbean partners, since oil and fuel trade within CARICOM is priced and paid for in US dollars — just like imports from the United States or India. Read more

    Bessent says global 15% tariff starts this week, predicts Trump duties will return to old levels later this year

    CNBC: President Donald Trump’s recently announced 15% global tariff will likely be implemented sometime this week, rising from its current rate of 10%, Treasury Secretary Scott Bessent said Wednesday. Read more

    US trade court orders tariff refunds in setback for Trump administration

    BBC: A federal judge has cleared the way for thousands of businesses to receive refunds for tariffs that the US Supreme Court struck down last month. Read more

    Small business owners doubt they’ll see refunds after supreme court invalidates Trump’s tariffs

    Guardian: Ruling could free $175bn, but legal hurdles and higher costs have left businesses questioning if claims are even worth it. Read more

    Judge rules companies are entitled to refunds for Trump tariffs overturned by the Supreme Court

    NBC: In a defeat for the Trump administration, the U.S. Court of International Trade said all “importers of record” were “entitled to benefit” from the ruling against the sweeping tariffs. Read more

    Mexican companies eager to keep USMCA treaty, report shows

    Reuters: Mexican businesses are eager to maintain ​a trilateral trade agreement with the United States and Canada that is up for review this year, according ‌to a report summarizing Mexico’s public consultation, released on Monday. Read more

    📢 STRAIGHT FROM THE WTO!

    Coordinators of Plastics Dialogue ready ministerial statement and other outcomes for MC14

    The coordinators of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP) on 6 March finalized the ministerial statement for the 14th Ministerial Conference (MC14), scheduled to take place on 26-29 March in Cameroon. The statement was first introduced by the co coordinators in November 2025 and has been continuously updated to reflect members’ perspectives following intensive consultations. Read more

    Chair of agriculture talks circulates revised draft text, as MC14 outline emerges

    The Chair of the negotiations on agriculture, Ambassador Ali Sarfraz Hussain (Pakistan), has circulated a revised draft text ahead of the WTO’s 14th Ministerial Conference (MC14) in Yaoundé, Cameroon, from 26 to 29 March. Most WTO members welcomed the draft as a basis for consensus at a meeting of the negotiating body on 6 March, although a couple of members said they do not find it acceptable in its current form. Read more

    DG Okonjo-Iweala urges members to explore new ways to revitalize WTO at South-South event

    Speaking at the 8th South-South Dialogue on Least-Developed Countries (LDCs) and Development on 6 March in Geneva, Director-General Ngozi Okonjo-Iweala highlighted the importance of members’ work to reform the WTO in the run-up to the 14th Ministerial Conference (MC14) to be held on 26-29 March. She acknowledged the progress they have made in addressing LDCs’ trade priorities and encouraged LDCs to continue pursuing their trade interests. Read more

    Ahead of Women’s Day, WEIDE Fund announces US$ 1.76-million grants to women-led businesses

    To mark the upcoming International Women’s Day on 8 March, the Women Exporters in the Digital Economy (WEIDE) Fund on 6 March announced its plans to disburse US$ 1.76 million in grants in the first quarter of 2026 to benefit 219 women-led enterprises in the Dominican Republic, Mongolia and Nigeria. The first disbursement sets in motion the innovative design of the WEIDE Fund, which introduces a new model of grant financing supported by technical assistance and exposure to a multistakeholder ecosystem for enterprises. Read more

    EU contributes EUR 75,000 to support LDC participation at MC14

    The European Union has contributed EUR 75,000 (approximately CHF 69,500) to support the participation of government officials from least developed countries (LDCs) at the WTO’s 14th Ministerial Conference (MC14), to be held from 26 to 29 March 2026 in Yaoundé, Cameroon. The contribution aims to ensure broad and inclusive participation in the WTO’s highest decision making body. Read more

    WTO members conclude month-long reform discussions in Geneva

    WTO members on 5 March completed a series of meetings dedicated to advancing work on WTO reform. Over the past month, members have exchanged views on a draft ministerial statement and a work plan intended to frame the scope of reform efforts following the 14th Ministerial Conference (MC14) on 26-29 March. They also finalized preparations for the ministerial level political discussion on reform to be held at MC14 in YaoundÊ, Cameroon. The reform facilitator, Ambassador Petter Ølberg of Norway, described the exchanges as substantive, thoughtful and conducted throughout in a positive spirit. Read more

    EU contributes EUR 1 million to strengthen trade capacity in developing economies, LDCs

    The European Union is contributing EUR 1 million (approximately CHF 928,000) to support developing economies including least developed countries (LDCs) in strengthening their participation in the multilateral trading system for 2026–2027. Read more

    Government Procurement Committee discusses GPA implementation, progress in accessions

    At a meeting of the Committee on Government Procurement on 4 March, parties to the Government Procurement Agreement (GPA) discussed issues concerning GPA implementation and progress in accession negotiations. Parties also elected a new Committee chair, Mr William Westerveld Jensen of Norway. Read more

    Heads of WTO, EIB sign landmark agreement to boost trade and investment

    The WTO Secretariat and the European Investment Bank (EIB) Group signed a Memorandum of Understanding (MoU) on 4 March to enhance sustainable trade and investment worldwide. The agreement marks the beginning of a partnership that will leverage the EIB’s financial resources and investment facilitation tools developed under the Investment Facilitation for Development Agreement concluded by a large number of WTO members to improve the regulatory environment, unlock investment and expand opportunities for developing countries. Read more

    WTO members consider new e-commerce proposal and previous submissions ahead of MC14

    At a meeting on the Work Programme on E-Commerce on 3 March, WTO members considered a proposal to establish a Committee on Digital Trade as part of a draft decision on e-commerce for the 14th Ministerial Conference (MC14), which will take place from 26 to 29 March in YaoundĂŠ, Cameroon. Members also continued discussions on the reinvigoration of the Work Programme and on the moratorium on the imposition of customs duties on electronic transmissions on the basis of two other proposals. Read more

    WTO members review five regional trade agreements, discuss transparency issues

    At a meeting of the Committee on Regional Trade Agreements (CRTA) on 3 March, WTO members reviewed five regional trade agreements (RTAs) involving Comoros, the European Union, Mozambique, Indonesia, China, Serbia, Kazakhstan, Azerbaijan, Türkiye and the Faroe Islands. They also reviewed other topics relevant to the Committee’s work under the Transparency Mechanism for RTAs. Read more

    🌎 GLOBAL TRADE STORIES

    Voice of Nigeria: Nigeria has intensified efforts to consolidate its leadership under the African Continental Free Trade Area (AfCFTA) while strategically positioning itself ahead of the 14th World Trade Organization Ministerial Conference. Read more

    EU keeps U.S. trade deal frozen over tariff uncertainty

    Financial Post: Top EU lawmakers on the parliament’s trade committee made the choice on Wednesday, saying they wanted more information from Washington about how it will preserve a 15 per cent ceiling on most EU products — a level both sides agreed to in last summer’s trade pact. Parliament initially halted ratification several days after the ruling. Read more

    Business mobilisation grows to 189 chambers and associations backing WTO reform and Moratorium renewal

    ICC: A growing number of chambers of commerce and business associations from around the world are urging governments to deliver concrete outcomes at the 14th Ministerial Conference of the WTO, as concerns mount over fragmentation in the global trading system. Read more

    China exports surge despite Trump tariffs

    BBC: Official figures show exports jumped by more than 20% in January and February, which is almost three times the rate predicted by economists. It puts the country on track to top the record-breaking annual trade surplus it saw in 2025. Read more

    Indonesia to file suspension of concessions against EU on palm oil dispute in WTO

    Reuters: Indonesia’s trade ministry said on Saturday that the government will file a suspension-of-concessions request ​against the European Union at the World Trade ‌Organization’s (WTO’s) dispute settlement body, citing the block’s failure to meet a WTO ruling in a palm oil case. Read more

    Thank you for reading the Caribbean Trade & Development News Digest, a product of the Caribbean Trade and Development blog. If you found this edition useful, subscribe to our Blog to ensure you never miss a weekly update.

    Image by Gerd Altmann from Pixabay

  • Caribbean Trade & Development News Digest – February 22-28, 2026

    Caribbean Trade & Development News Digest – February 22-28, 2026

    Dear Reader,

    Welcome to our Caribbean Trade & Development News Digest for the week February 22-28, 2026!

    📌THIS WEEK’S HIGHLIGHTS

    Below are this week’s headlines!

    New U.S. global tariffs officially took effect at 10% on Feb 24 after the Supreme Court struck down much of the previous broad tariff regime. President Trump has signalled intentions to raise the rate to 15%.

    An illegal regime change war started by the US and Israel against Iran has escalated into a full-out conflict and could cause disruptions to shipping through the Strait of Hormuz, with impacts on global trade, oil prices and cost of living.

    The Caribbean Community (CARICOM) held its 50th Regular Meeting of the Conference of CARICOM Heads of Government from February 24-27. The communique from the meeting may be read here.

    🌴CARIBBEAN AND HEMISPHERIC TRADE STORIES

    Donald Trump’s new 10% global tariff comes into effect

    The Guardian: US president had said he would raise levy to 15% after last week’s supreme court ruling. Read more

    Venezuela, Barbados eye trade partnership

    Barbados Today: At a press briefing to introduce the Venezuelan team on Thursday, Barbados’ Ambassador to Venezuela, Commander Aquinas Clarke, highlighted Barbados’ goal of diversifying trade links to the south, noting Venezuela’s proximity and potential as a key partner. Read more

    Berger Paints’ Barbados plant closure reignites trade rules debate

    Barbados Today: Berger Paints Barbados’ decision to close its factory has triggered renewed concern about the future of manufacturing on the island and whether the Caribbean’s regional trade framework is working as intended. Read more

    T&T still doing business with Cuba

    T&T Guardian: Despite Cuba’s economic difficulties, CEO of the Trinidad and Tobago Manufacturers’ Association (TTMA) Dr Ramesh Ramdeen continues to see the north Caribbean, Spanish-speaking island as a potential market of 11 million people for T&T’s companies to trade with. Read more

    Premier faces backlash over CARICOM free movement comments

    BVI News: Premier Dr Natalio Wheatley has come under criticism following remarks that the territory would not accept free movement of Caribbean nationals if granted full membership in the Caribbean Community. Read more

    BVI not seeking free movement within CARICOM

    Gleaner: The British Virgin Islands (BVI) will not allow the free movement of Caribbean nationals if it is accepted as a full member of the Caribbean Community (CARICOM) grouping, Premier Dr Natalio Wheatley has said. Read more

    📢 STRAIGHT FROM THE WTO!

    WTO members consider enhanced transparency on trade and climate measures

    At a meeting held on 26 February, the Committee on Trade and Environment (CTE) took stock of progress in various formats to galvanize work on the trade-and-environment nexus, with particular emphasis on trade and climate measures. They also considered next steps, including enhancing transparency of such measures on a voluntary and pilot basis. In addition, members heard updates on the work in other international fora as well as developments in several member-led environmental initiatives at the WTO. Read more

    Members advance work on 2026 review of Trade Facilitation Agreement

    At the Committee on Trade Facilitation meeting on 25 February 2026, WTO members advanced work on the second review of the Trade Facilitation Agreement (TFA), discussed technical assistance coordination and continued experience-sharing sessions. Read more

    Rewiring global value chains in a changing global environment

    Global value chains are the backbone of the world economy, even at a time when they are undergoing structural and policy-driven changes in the face of a rapidly changing global environment. Read more

    Panel to review Indian measures on batteries, e-vehicles; US appeals tax credits report

    The Dispute Settlement Body (DSB) agreed at its meeting on 24 February to a request from China for the establishment of a panel to review certain measures imposed by India in the automotive and renewable energy sectors. The United States notified its decision to appeal the panel report in a case initiated by China regarding certain tax credits under the US Inflation Reduction Act. Read more

    Trade and gender group kickstarts thematic discussions for 202

    Members of the Informal Working Group on Trade and Gender held the first of a series of thematic discussions for 2026 on 20 February with the first meeting focusing on mainstreaming the  topic of trade and gender in the work of WTO bodies in line with the group’s 2025-2026 Work Plan. Members also discussed deliverables to be launched at the sidelines of the 14th Ministerial Conference (MC14) in Yaoundé, Cameroon, next month. Read more

    🌎 GLOBAL TRADE STORIES

    Zimbabwe suspends exports of raw minerals and lithium concentrates

    Financial Afrik: The government of Zimbabwe has announced, through its Minister of Mines, Polite Kambamura, the immediate suspension of all exports of raw minerals and lithium concentrates. Read more

    Half of Africa’s oil to the U.S. comes from one country, as the U.S. cuts African oil imports

    Business Africa: A new report has revealed that Nigeria, Africa’s top oil producer, is responsible for 52% of Africa’s crude exports to the United States. Read more

    What disrupting the strait of Hormuz could mean for global cost-of-living pressures

    Guardian: Donald Trump’s attempt to overthrow the Iranian government by force could trigger a new wave of cost-of-living pressures that embattled governments and central banks around the world will struggle to deal with. Read more

    Oil prices surge, but no panic yet, as Iran war continues

    NPR: Global crude oil prices briefly surged past 9% late Monday, and stocks fell temporarily as the war with Iran continued its third day. Read more

    EU will provisionally apply contested South America trade deal

    RFI: The European Commission announced Friday it will provisionally implement a mammoth trade deal with the South American bloc Mercosur, prompting a public split between its two largest member states France and Germany. Read more

    EU faces transition period with US after Trump tariff move, says EU trade chief

    Reuters: The European Union is facing a “transitional period” of a few months in relations with the U.S. after President Donald Trump’s new “import surcharge”, which threatens to undermine the trade deal the two sides struck last year, European Trade Commissioner Maros Sefcovic said on Tuesday. Read more

    Thank you for reading the Caribbean Trade & Development News Digest, a product of the Caribbean Trade and Development blog. If you found this edition useful, subscribe to our Blog to ensure you never miss a weekly update.

    Image by Gerd Altmann from Pixabay

  • Caribbean Trade & Development News Digest – Feb 15-21, 2026

    Caribbean Trade & Development News Digest – Feb 15-21, 2026

    Dear Reader,

    Welcome to our Caribbean Trade & Development News Digest for the week February 15-21, 2026!

    📌THIS WEEK’S HIGHLIGHTS

    A week is a long time in trade. And what a week it has been! Below are this week’s headlines!

    The US Supreme Court strikes down President Trump’s emergency power tariffs implemented under the International Economic Emergency Powers Act (1977), but the President has already announced he will use other legislation to maintain the current tariffs, and later increased these to 15%.

    World Trade Organization (WTO) members have agreed on a draft decision for approval at the 14th Ministerial Conference (MC14) in March on improving the integration of small economies into the world trading system.

    In its latest Global Trade Update (February 2026), UN Trade and Development (UNCTAD) notes that uneven tariff hikes are driving trade diversion, while tariff shifts are redrawing the competitiveness map. Have a read here!

    🌴CARIBBEAN AND HEMISPHERIC TRADE STORIES

    Former CARICOM leaders speak out against the U.S. blockade on oil supplies from other countries to Cuba.

    A former President and seven ex Prime Ministers from CARICOM countries issued a statement on February 19, 2026, expressing their concern about the devastating consequences of an absolute blockade on oil supplies from third countries to Cuba, established by the U.S. President’s Executive Order of January 29, 2026, which threatens to impose trade tariffs on countries supplying oil to Cuba. Read more

    Patterson agonising over Cuba Crisis

    Jamaica Gleaner: Former Jamaican Prime Minister P.J. Patterson has expressed his “indescribable” personal torment over the deepening political and humanitarian crisis in Cuba – a crisis he says is made worse by the absence of the bold political courage once shown in the era of Michael Manley. Read more

    TTMA welcomes T&T’s removal from EU tax list

    Trinidad Guardian: The Trinidad and Tobago Manufacturers’ Association (TTMA) has welcomed this country’s removal from the European Union’s list of non-cooperative jurisdictions for tax purposes. Read more

    Barbados Leads the Charge in Sustainable Maritime Tourism: Green Shipping Corridor Initiative Set to Revolutionize Caribbean Travel and Trade

    TTW: Barbados is making waves in the maritime industry as it embarks on an ambitious plan to create a green shipping corridor, a groundbreaking initiative that promises to transform both tourism and trade across the Caribbean. Read more

    Which Trump tariffs did the Supreme Court strike down? Here’s what to know

    AP: The nation’s highest court struck down some of U.S. President Donald Trump’s most sweeping tariffs on Friday, in a 6-3 decision that he overstepped his authority when using an emergency powers law to justify new taxes on goods from nearly every country in the world. Read more

    Trump tariff chaos: What does 15% levy mean for trade deals the US signed?

    Al Jazeera: From the EU to Vietnam to the UK and India, multiple countries had signed or finalised trade deals with the US. Read more

    US trade commission launches review of USMCA automotive rules of origin

    Reuters: The U.S. International Trade Commission has initiated an investigation into the automotive rules of origin under the United States-Mexico-Canada trade agreement, the commission said in a statement on Thursday. Read more

    Trump adds 10% global tariff after U.S. Supreme Court decision, but CUSMA-compliant goods are exempt

    CTV: A defiant U.S. President Donald Trump said he will impose an additional 10 per cent global tariffs on Friday after the Supreme Court’s decision to strike down many of the existing tariffs, including some levied against Canada. Read more

    📢 STRAIGHT FROM THE WTO!

    Women’s access to international markets to be spotlighted at MC14 high-level event

    A high-level event on women and trade will be held on the margins of the 14th WTO Ministerial Conference in YaoundĂŠ, Cameroon, on 25 March to bring together women entrepreneurs, development partners and WTO members. Registration for the event – which will feature the work of the WTO Informal Working Group on Trade and Gender, the International Trade Centre (ITC) SheTrades Initiative and the Women Exporters in the Digital Economy (WEIDE) Fund — is open until 22 February. Read more

    Members endorse draft MC14 decision on boosting small economies’ participation in trade

    WTO members agreed on 17 February on a draft decision for approval at the 14th Ministerial Conference (MC14) in March on improving the integration of small economies into the world trading system. Adopted at a meeting of the Committee on Trade and Development’s Dedicated Session on Small Economies, it is the first draft decision to be submitted for ministerial approval at MC14. Read more

    Members discuss new approaches, share experiences on reforming fossil fuel subsidies16 February 2026

    At a meeting on 16 February, WTO members participating in the Fossil Fuel Subsidy Reform (FFSR) initiative continued exploring new approaches to reforming fossil fuel subsidies and examining the effects of subsidies provided to emissions-intensive sectors. Members reaffirmed the importance of enhancing transparency through greater information and experience sharing. Read more

    🌎 GLOBAL TRADE STORIES

    Asian economies weigh impact of fresh Trump tariff moves, confusion

    Reuters: U.S. trading partners in Asia were weighing fresh uncertainties this weekend after President Donald Trump announced a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. Read more

    South Africa’s trade ministry to oppose liquidation of Tongaat Hulett

    Reuters: South Africa’s trade ministry said on Friday it would oppose the liquidation of sugar producer Tongaat Hulett (TONJ.J), opens new tab, warning of severe consequences for jobs, farmers, and the country’s sugar industry. Read more

    How AGOA renewal shapes Africa’s trade future

    UNCTAD: Despite heightened trade tensions and policy volatility, global trade and growth demonstrated notable resilience in 2025. Supply chains continued to adjust, markets remained connected, even as pressures weighed more heavily on smaller and more vulnerable economies. Read more

    EU says US must honor a trade deal after court blocks Trump tariffs

    AP: The European Union’s executive arm requested “full clarity” from the United States and asked its trade partner to fulfill its commitments after the U.S. Supreme Court struck down some of President Donald Trump’s most sweeping tariffs. Read more

    France’s Macron holds bilateral talks with India’s Modi to boost economic and strategic ties

    AP: French President Emmanuel Macron met with India’s Prime Minster Narendra Modi on Tuesday for bilateral talks aimed at deepening economic and strategic ties as the two countries seek closer cooperation amid global uncertainty and shifting geopolitical alignments. Read more

    Global trade tensions: a “wake-up call” to fast-track intra-African trade protocols – ACCP

    MSN: The African Chamber of Content Producers (ACCP) has stated that recent escalating global trade tensions must serve as a definitive catalyst for Africa to realize its own continental market. Read more

    Why the EU won’t anchor an anti-Trump trade bloc

    Euractiv: Mark Carney is eager to build a unified super-bloc capable of squaring up to the trade leviathans of China or the US. But his grand design is really a pipe dream. Read more

    European Commission targets WTO’s key rule in push to rebalance China trade

    Euronews: EU Trade Commissioner Maroš Šefčovič calls to reassess the World Trade Organization’s “Most Favoured Nation” rule with China in focus. Chinese exports have surged since the country joined the trade body. Read more

    Thank you for reading the Caribbean Trade & Development News Digest, a product of the Caribbean Trade and Development blog. If you found this edition useful, subscribe to our Blog to ensure you never miss a weekly update.

    Image by Gerd Altmann from Pixabay

  • US Supreme Court Tariff Decision: What does this mean for the Caribbean?

    US Supreme Court Tariff Decision: What does this mean for the Caribbean?

    Alicia Nicholls

    On February 20, 2026, the Supreme Court of the United States (SCOTUS), in a keenly-awaited decision, struck a lethal blow to the Trump Administration’s Liberation Day ‘reciprocal’ tariff regime. Asked to determine whether the International Emergency Economic Powers Act (IEEPA) authorizes the President to impose tariffs, the Supreme Court in Learning Resources Inc v Trump (2026) held by a 6 to 3 majority that the 1977 Act does not grant the President such power.

    Although US law contains provisions in various pieces of legislation delegating to the President the ability to impose tariffs for national security reasons, the SCOTUS reaffirmed that it is Congress which has taxing (including tariff imposition) authority under the US Constitution. This ruling has, therefore, served as a check on presidential power, reaffirms the separation of powers, and is also welcomed news for countries whose exports to the US have been largely subject to the Liberation Day ‘reciprocal’ and ‘additional’ tariffs. However, as this article will show, the fight is not over yet.

    How did we get here?

    First, let us take a step back and look at how we got here. From his first term, tariffs have been a central plank of President Donald J. Trump’s neomercantilist America First Trade policy under his pledge to “Make America Great Again”. In his second term, the President upped the ante by seeking to claim broad tariff imposition powers under the 1977 IEEPA. This Act provides the US President with economic tools to deal with “an unusual and extraordinary threat” from a foreign origin and with respect to a declared national emergency. It should be noted that the statute does not specifically identify tariffs as one of these tools.

    In his infamous ‘Liberation Day’ Executive Order of April 2, 2025, the President declared a national emergency with regard to two identified “unusual and extraordinary threats”: first, the flow of illegal drugs from Canada, Mexico and China which he argued had created a public health crisis and second, the US’ “large and persistent trade deficit” which had led to a “hollowing out” of the US’ manufacturing base and undermined critical supply chains. The Government’s central argument was that the IEEPA gave the President the ability to implement tariffs to tackle these “threats”.

    More importantly for the Caribbean, President Trump imposed a 10% “reciprocal tariff” on nearly all countries globally, and additional tariffs on others. While Caribbean countries were subject to the 10%, Trinidad & Tobago’s ‘reciprocal’ tariff rate was increased from 10% to 15%, while Guyana (which currently has a trade surplus with the US) was subject to an additional rate of 38% which was subsequently reduced to 15% after diplomatic negotiations.

    These tariffs were implemented regardless of whether there was a free trade agreement or other preferential trade arrangement in place between the US and that country. Many Caribbean countries, had hitherto, enjoyed non-reciprocal duty-free access to the US market for most of their products under the Caribbean Basin Initiative and its constituent pieces of legislation. However, these new tariffs meant that goods which were originally tariff-free were now subject to at least 10% tariffs, unless they were among the list of exempted goods which were later expanded to include crude oil, aluminum ore, gold, nitrogen fertilisers, among other goods of export interest to the region.

    Impact of the Tariffs

    It is importers which pay import tariffs and not foreign countries. Importers can either absorb the costs, or, as they often do, pass them on to consumers.

    The US Chamber of Commerce vocally criticized the broad-based use of tariffs and many US small and medium-sized enterprises (SMEs) were particularly impacted. This is what prompted Rick Woldenberg, CEO of Learning Resources Inc, a small family-owned business specializing in educational children’s toys, to bring this suit against the Trump Administration’s over the IEEPA tariffs.

    In an MSNBC interview in the aftermath of the ruling, the CEO stated that his business had lost millions of dollars because of these tariffs in 2025. His is one of several US businesses which are now seeking refunds from the Federal Government for the tariffs they paid (plus interest), and which Penn-Wharton projects at US 175 billion.

    US householders also were among those impacted by the tariffs, which a Tax Foundation report estimated as amounting to an average tax increase of US $1,000 per household in 2025 and a projected US$1,300 in 2026. Indeed, polling shows that the tariffs are increasingly unpopular among the American populace.

    Moreover, the tariffs have not even achieved their stated objectives. Although tariff revenue has increased, the US trade deficit still remains wide and the merchandise trade deficit reached a record high in 2025. This is not surprising as many US businesses and households in the first half of 2025 rushed to bring in imported products before the tariffs came into effect.

    What does this ruling  mean for the Caribbean and what next?

    It should be noted that this ruling only applies to the IEEPA tariffs and not the national security tariffs under other statutes, such as the Section 232 (Trade Expansion Act 1962) and 301 (Trade Act of 1974) tariffs.  However, on the face of it, the SCOTUS ruling is good news for Caribbean countries, which were caught under the now illegal IEEPA tariffs. The US remains the region’s largest trading partner and the main market for extra-regional exports. Tariffs on Caribbean goods make these goods less price competitive in the US market, and therefore impact Caribbean firms exporting to the US, and ultimately pose challenges for Caribbean economies.

    However, this matter is not over yet. In his address on the SCOTUS’ decision, President Trump termed the ruling “deeply disappointing”, while having some choice words for the majority opinion justices.

    The President has other Acts under which he can impose tariffs, but these acts have limits on the duration and amount and involve more rigorous procedures. President Trump has stated that he will sign an executive order to impose a 10% global tariff “over and above” existing tariffs under section 122 of the Trade Act of 1974. Although section 122 tariffs can only be implemented up to 15% and for a limited period (150 days unless Congress votes to extend them), it introduces more uncertainty for both US importers and foreign exporting firms to the US which hoped that this ruling would have given them some certainty.

    As we await the Trump Administration’s next steps, much uncertainty exists and Caribbean businesses must continue to monitor developments and adjust accordingly. At the region-level, CARICOM and its associate institution, the Caribbean Private Sector Organisation (CPSO), have been proactively keeping their hands on the pulse of constantly evolving US trade policy developments, including engaging in diplomacy to advocate for the region’s interests.

    Alicia Nicholls, B.Sc, M.Sc., LL.B. is an international trade specialist and the Founder of the Caribbean Trade Law and Development Blog: www.caribbeantradelaw.com.