Challenges Loom as US Tariffs Begin

As the Philip J. Pierre administration weighs its response to sweeping new US import tariffs, the head of Saint Lucia’s Chamber of Commerce is sounding the alarm about other looming threats — proposed port entrance fees targeting Chinese-built vessels and inefficiencies at local ports.

On Wednesday, President Donald Trump declared what he called “Liberation Day,” announcing broad-based tariffs of 10 per cent on all imports into the United States, with even steeper levies on goods from select countries. The 10 per cent reciprocal tariff, which takes effect on April 5, includes products from Saint Lucia, previously exempt under the Caribbean Basin Initiative (CBI).

In Saint Lucia’s case, all goods imported into the US under the CBI, which previously granted duty-free access to most products, will be subject to a ten per cent tariff from April 9.

Minister for Commerce, Manufacturing, Business Development and Consumer Affairs Emma Hippolyte, who chairs the Ministerial Task Force to Monitor and Evaluate recent changes to the US’ trade policy, addressed the situation cautiously on Thursday.

“While the Government of Saint Lucia has not received any official communiqué on the tariffs, and while this is an issue that we do not want people to panic about, it is one that we are discussing and taking seriously,” she said.

Hippolyte added that during Thursday’s “pre-planned meeting” of the task force — which includes representatives from the private sector and trading community — the group discussed the implications of the tariffs, shifts in shipping rates, and possible opportunities. The task force will submit its recommendations to Cabinet on April 7.

“Furthermore,” the minister said, “the government is actively participating in regional consultations with public and private sector stakeholders to develop appropriate strategies and responses to the new US market access arrangements.”

The latest tariffs mark the most dramatic expansion of US trade levies in nearly a century.

Meanwhile, Chamber of Commerce Executive Director Brian Louisy told St Lucia Times that the move was not unexpected.

“Now that we know what we are faced with, we can put some sort of plan in motion,” he said. “The truth is, we import more from the US than we export, so it is not that difficult, along with Export Saint Lucia, to look at what is being exported and assess the impact.”

Louisy, however, warned of a more immediate concern: a proposal from the US Trade Representative’s office that would impose a US$1.5 million fee per port call for Chinese-built vessels entering US ports. Vessels whose operators have placed over 50 per cent of their new orders with Chinese shipyards would also face a $1 million charge per port entry.

“If this happens, it will significantly increase the cost of shipping containers to Saint Lucia,” he said, noting that Chinese-built ships are vital to the region’s supply chains.

Louisy also pointed to ongoing debates at the International Maritime Organisation (IMO) over whether the Caribbean qualifies for preferential shipping treatment — another potential driver of future cost increases.

But even without external shocks, Louisy said local issues are adding to the cost of doing business.

He said the country must fix chronic issues such as congestion and equipment failures at Saint Lucia’s seaports that continue to delay cargo clearance, which hurts businesses and consumers alike.

Some businesses which had imported goods in December were still in the process of clearing them in March, he noted.

The Chamber of Commerce head insists that local reforms must continue despite external pressures: “We cannot remain fixated on what is happening in the US and elsewhere and not fix what is happening at home.”