In the Caribbean, calls have grown louder for United States President Donald Trump to rethink his tariff trade war due to price hikes expected across the region.
Democrat Stacey Plaskett, the US Virgin Islands’ delegate to the House of Representatives, added her voice to concerns about how the region will be affected if transport giants like Tropical Shipping are slapped with planned $1 million fees for any Chinese-made vessel entering US ports.
Tropical Shipping CEO Tim Martin said last month that such levies could see the firm go under as nine of its 19 ships were built in China.
That view was echoed by Premier Natalio “Sowande” Wheatley last week as he warned that food and electricity prices in this territory could be forced up by the move.
Across the Caribbean
On Friday, Ms. Plaskett expressed particular concern about the effects on the USVI but said the impact would be felt across the Caribbean.
“If the order comes into full effect, it will result in significant port fees on maritime transport operators,” she said.
The congresswoman also warned of the consequences of extending Mr. Trump’s trade war to other areas.
“The order also directs the US Trade Representative to consider imposing fees on Chinese-built cranes and other cargo-handling equipment, an action which could affect almost every port in America,” she said. “These actions will cause increased shipping costs, shipping delays, and, in some cases, the wholesale termination of service by cargo carriers to impacted locations throughout the coast of the United States and especially places like the Virgin Islands,” she said.
As a result, she added, prices are likely to shoot up.
“I am particularly concerned for coastal and island communities, including the Virgin Islands, where the imposition of these punitive measures will skyrocket costs of food and other everyday items that must be imported by the maritime industry,” she said.
Talks ongoing
Ms. Plaskett added that she is in talks with leaders throughout the Caribbean on the issue.
Additionally, she said, she has been lobbying US Trade Relations Ambassador Jameison Greer to try and get a change of policy.
“I am leading a letter to USTR Ambassador Greer and the administration to make the case for this exemption and underscore the impact of these fees on the Virgin Islands, which will permeate through the Caribbean region,” she said.
Mr. Trump’s trade stance has seen heavy losses across global stock markets in recent weeks as he imposed tariffs across the world, including a ten percent levy on imports from this territory.
As markets tumbled, the US president then suspended most of the levies for 90 days, but not those against China.
Despite other impacts, experts have said that a main driving force of the VI economy, financial services, is unlikely to be hit by Mr. Trump’s actions.
However, the territory is heavily dependent on the importation of food and oil.
