The impact of new tariffs as announcement by US President Trump could have a significant impact on the Antigua and Barbuda in a number of ways.
That’s the view of Trade Minister, E.P Chet Greene who appeared on the Browne and Browne Show on Saturday. The Minister was asked to comment on the announcement from the White House regarding the imposition of tariffs from Antigua and Barbuda on any goods that the country exports to the US.
According to the minister the impact could be reflected in a reduction in the number of visitors to the country, if US residents decide to cut back on expenditure in the face of a pending recession.
“In terms of the wider tariff conversation, we stand affected. Because of this tariff on China and other countries that export their goods into the United States, it has implications for softening economies. Already we are hearing that the country that is suffering most under the new tariffs is the United States. Now, that is our number one source market for tourism. Therefore, if our number one source market becomes ‘soft’ and Americans then have less spending money, it stands to reason that a vacation is one of the first things that they would pull,” he explained.
The Trade Minister also noted that should the US economy enter into a downturn, then this could affect many Antigua and Barbuda families in a more direct way.
“We have to also think about remittances as there are many families who rely on this for their sustenance. However, should the economy slow down and unemployment in the US rises, that could affect many nationals in the US to be out of a job and therefore not be in a position to help their families back home,” he further explained.
Antigua and Barbuda nationals who frequently shop for consumer goods in the United States could find themselves paying higher prices for these items if the 145 percent tariff on Chinese goods remain in effect, Greene noted.
He used a practical example to highlight the impact of the tariffs on people in Antigua and Barbuda who import items that are made in China. “There is a young man in my constituency who sells seamoss. He purchases his bottles from China because they are less expensive. Now these goods go through the US. Therefore, if they attract this 145 percent tariff, it simply means that the costs for the bottles would naturally go up and thus the price for seamoss,” he emphasized.
The young man in this case may be forced to make a decision that could very well mean that he ends his seamoss business, Greene declared.
The minister stated that of this one example is looked at from the point of view of the number of businesses that rely on Chinese goods, then one could understand the true impact of the tariffs on the economy.
