NASSAU, BAHAMAS – Economic Affairs Minister Michael Halkitis says The Bahamas will have to “wait and see” what impact the Trump administration’s 10 percent reciprocal tariff will have, noting that while The Bahamas does not export much to the United States, the greater concern is the trickle-down effect on the global economy and the possibility of a recession in the U.S.
During a press conference at the Office of the Prime Minister, Halkitis stated: “The Bahamas is subject to what we call the baseline tariff— the 10 percent tariff that has been imposed on virtually all countries around the globe. As you know, some nations face significantly higher tariffs. We are adopting a wait-and-see approach, as things can change very rapidly. Something in effect today could be revoked later the same day. We will continue monitoring the situation while working in consultation with our CARICOM partners for any possible response.”
He added: “We have been pursuing a trade diversification policy as part of our efforts to reduce the cost of living in the country. This includes finding ways to source goods from other countries without relying on intermediaries. That said, the United States is and will remain our major trading partner. However, we do not foresee an immediate major impact. The tariff is essentially a 10 percent tax on goods imported into the United States, applied at a baseline rate for affected countries. Based on our data, the primary goods we export to the U.S. are seafood and salt. We will continue to monitor developments.”
The tariff policy, which takes effect on April 5, imposes a baseline 10 percent tariff on imports from more than 100 countries, including several Caribbean nations such as Trinidad and Tobago, Haiti, Jamaica, Barbados, and Antigua and Barbuda.
U.S. President Donald Trump says the policy is intended to counter what he describes as unfair trade practices, claiming the U.S. has been disadvantaged for decades. While most countries will face the baseline tariff, others will be hit with significantly higher rates. China’s total tariff burden will rise to 54 percent when combined with existing duties, while the European Union will face a 20 percent tariff. Goods from Japan and India will be taxed at 24 percent and 26 percent, respectively.
Halkitis emphasized the broader concerns for the Bahamas: “From a government perspective, our greater concern is how this trade war impacts the global economy. Some countries face tariffs as high as 40 percent or more, and this could affect global trade, economic growth, and overall stability. How this trickles down to us is what we are most focused on. We remain hopeful that a full-scale trade war, leading to a recession and economic slowdown, can be avoided. Again, we will continue to monitor the situation. Discussions on agribusiness, food security, and economic diversification will also be crucial in navigating these changes.”
