Dramatic price hikes for Virgin Islands residents may have been averted after the United States abandoned plans to tax Caribbean transporters who use China-built ships in its ports, Premier Natalio “Sowande” Wheatley said.
Tropical Shipping, a major player in the VI market that claims to transport half the goods shipped in the region, said in March that it could go bust if US President Donald Trump forced it to pay the planned $1 million fee per ship.
The premier expressed relief that Mr. Trump had abandoned the plans, which he has said would drive up food and energy bills in the territory.
“I am pleased with the exemption, and I applaud Tropical Shipping and others for their advocacy,” Mr. Wheatley told the Beacon. “The increase would have had a dramatic impact on prices.”
The abrupt move was another rollercoaster turn in Mr. Trump’s global trade war, which has thrown money markets into turmoil in recent months and led economists to warn of a possible US recession.
Advocacy
Tim Martin, the president of Florida-based Tropical Shipping, said Caribbean-wide advocacy was key in convincing the White House to change course.
If the fees had gone ahead, he added, they would have cost Tropical’s customers an additional $3,000 per 40-foot-container load as nine of its 19 ships were built in China in the past 25 years.
“This is a huge victory for us and the entire Caribbean region that we serve,” Mr. Martin said, adding, “Our voices were heard. We could not have accomplished this without the relentless advocacy from our Caribbean representatives in Washington DC, our customers, and the many organisations that wrote letters to the United States Trade Representative describing the devastating multiplier effect these port fees would have had on all of us.”
He added that a USTR committee member told him that the body was surprised by the massive response from Caribbean leaders and businesses.
“One of Tropical’s core values is ‘Responsiveness is our driving force,’” Mr. Martin said. “Caribbean communities were our driving force on this issue.”
The BVI Chamber of Commerce told the Beacon last month that companies in the territory were examining alternative supply routes in light of Mr. Trump’s trade threats.
Experts have said that the US president’s global tariffs will spark price increases in the VI and that the tourism trade could also be hit if Americans have less disposable income — especially in the event of a US recession.
However, the financial services industry, which accounts for more than half of government revenue, is unlikely to be adversely impacted, according to industry experts.
