CAPSO warns of deepening impact of US Tariffs on region as T&T levies increase

The Caribbean Association of Private Sector Organizations (CAPSO) has issued a warning that the United States’ decision to increase Trinidad and Tobago’s reciprocal tariff from 10% to 15% may cause the most substantial and direct adverse effects among CARICOM member nations. The organization outlined via press release that this move could lead to the country experiencing the greatest decline in export revenue.

Notably, said the statement, prior to the April 9 implementation of the 10% tariff, Trinidad and Tobago, along with other CARICOM states, enjoyed duty-free access to the U.S. market under the Caribbean Basin Initiative (CBI). The recent increase to a 15% tariff, effective from August 7, was enacted just months after Trinidad and Tobago was assigned a baseline rate of 10%, introduced in April 2025 as part of the America First trade policy.

CAPSO’s analysis now estimates potential annual export losses of USD 291.9 million for Trinidad and Tobago, a significant rise from the USD 194.6 million projected under the previous 10% rate. This escalation widens the disparity between Trinidad and Tobago and other CARICOM countries regarding possible export setbacks caused by U.S. measures.

The report explains that approximately two-thirds of Trinidad and Tobago’s expected export losses are concentrated within two sectors: Base Metals and Articles Thereof (USD 199.3 million) and Chemicals (USD 74.8 million). The Base Metals category mainly includes various iron and steel products, which are extensively used in U.S. construction, automotive, and manufacturing industries.

The Chemicals sector encompasses products such as anhydrous ammonia, methanol, and urea—essential raw materials for fertilizer manufacturing, plastics, and other industrial applications. These exports form a core part of Trinidad and Tobago’s industrial infrastructure and are vital components in U.S. supply chains that depend on affordable raw materials. While the estimated revenue loss in the Agriculture and Food Products sector (just over USD 9 million) is comparatively smaller, the repercussions are nonetheless significant.

This sector supports small-scale producers and rural livelihoods, with exports like fish products—important in U.S. food markets—and prepared condiments, sauces, and seasonings supplied to diaspora communities and niche segments of the U.S. market. For many micro and small exporters, the additional 5% tariff increase, stacked on the previous 10%, will considerably challenge their competitiveness and impact the country’s foreign exchange earnings.

“Trinidad and Tobago was already the most exposed CARICOM economy under the reciprocal tariff regime,” stated Dr. Patrick Antoine, CEO and Technical Director of the CPSO. “This adjustment not only increases the scale of potential losses, but it does so in sectors that are vital to our industrial capacity and to US manufacturers who rely on our exports for inputs.”

Dr. Antoine further connected these developments to a broader decline in CARICOM’s traditional trade relationship with the U.S.“In our recent submission to the US review of the Caribbean Basin Initiative, we highlighted that these
new tariffs erode the preferential access that has underpinned our economic partnership with the US for decades. That erosion is now accelerating.”

CAPSO highlights that the America First policy and the April implementation of reciprocal tariffs served as a wake-up call for the region. The recent rise to 15% signals the urgent need for swift, coordinated responses to protect competitiveness.

According to Dr. Antoine, such actions should be based on successful collaborative models: “The joint regional and private sector position that secured exemptions for China-built ships and short-sea shipping for the Caribbean is proof that when we act collectively, we can protect our strategic interests.”

He concluded by urging,“ Now is the time to apply that same resolve — to protect current trade flows, engage the US
on tariff differentials and position Trinidad and Tobago and CARICOM for long-term strength in a more contested global market.”