NASSAU, BAHAMAS – As uncertainty looms over what impact the Trump administration’s tariff hikes could ultimately have on the Bahamian economy, a well-known regional economist is warning authorities to be cautious and implement measures to prevent panic and crisis profiteering, similar to what she says occurred during the COVID-19 pandemic.
Marla Dukharan, speaking to Eyewitness News on the sidelines of the RF Bahamas Economic Outlook, expressed concern that countries in the region had not learned from the COVID-19 pandemic crisis and failed to seriously push for food and fuel security.
“I think it’s unusual that we would have this level of uncertainty and volatility, but if you think back to the pandemic, we had similar levels,” she said. “The question is, did we use that opportunity to secure food and fuel independence? We didn’t, and now we find ourselves in yet another crisis. Our policymakers are unsure of what to do, when we should have used the last four years more wisely. That’s one concern I have—are they going to use this opportunity to get it right this time? I would certainly hope so.”
There is growing concern that the Trump administration’s tariff hikes on Canada, Mexico, and China could significantly impact the Bahamian economy. With the U.S. as a major trading partner, these tariffs may lead to higher import costs, driving up prices for goods and affecting both consumers and businesses. Additionally, supply chain disruptions could cause shortages or delays in essential goods, while the uncertainty surrounding the trade war could weaken investor confidence and impact tourism, key pillars of the Bahamian economy.
Dukharan also highlighted the issue of profiteering during crises, referencing the pandemic as an example. “You have to sit through the crisis or uncertainty itself, but those who would profit from it—like pandemic profiteering—are a concern. For example, more than 50 percent of the price hikes we saw during the pandemic were a result of profiteering,” she explained. “We know that, for instance, companies that produce eggs are seeing their profits, in some cases, quadruple due to the current egg shortage. I would urge the authorities and policymakers to look at this and ensure that companies aren’t just trying to profit off this crisis.”
Dukharan emphasized the lingering social and economic effects of the pandemic, particularly in the Caribbean. “People are still reeling financially, economically, and socially from the pandemic. Most countries in the Caribbean don’t even measure poverty, and this round of uncertainty is going to have detrimental effects on the most vulnerable. I would urge the authorities to put measures in place to curb panic profiteering and crisis profiteering from taking place again.”
