TT Chamber: Tariff uncertainty not good for business

TT Chamber of Industry and Commerce president Sonji Pierre-Chase told Newsday in a phone conversation that the on-again, off-again imposition of tariffs creates an atmosphere of uncertainty that is not good for business.

On April 9, US President Donald Trump announced that the "reciprocal" tariffs announced on April 2 and set to take effect on April 9, will be paused for 90 days.

Commenting on the development, Pierre-Chase said, “When you have fluctuations like that where the narratives change very quickly, it doesn’t lend well to business certainty.

“Businesses do not operate by uncertainty and flux. They require some level of uncertainty between the markets so any kind of disruption would not be good.

“You just have to look at the stock markets around the world and see that the markets plummeted, then there is a rumour that there would be a change in perspective you saw a gradual rise, then when it was realised that the rumours were not true, it fell again.

“That kind of uncertainty certainly does not lend well to business activity.”

She said the chamber would make an official statement on the matter soon.

Minister of Trade Paula Gopee-Scoon said her ministry was still awaiting confirmation on whether the recently announced pause on global tariffs imposed on April 2 by the US government would affect TT.

Newsday contacted the minister on April 9, hours after US President Donald Trump announced the “reciprocal” tariffs would be paused.

Trump, through his Truth Social social media platform and X, added that most countries will have reduced tariffs of a baseline ten per cent.

However he said China would have increased tariffs from 104 per cent to 124 per cent, because it has issued retaliatory tariffs of 84 per cent against the US.

The reversal of the position on tariffs by the US government also saw a reversal of the trajectory of US stock markets, with Wall Street rebounding after a six-day freefall.

The Dow Jones market shot up more than 2,000 points (5.33 per cent) almost immediately after the announcement.

WHAT ARE TARIFFS?

Tariffs are taxes charged on goods imported from other countries.

For example, if TT had a 20 per cent tariff on a particular US-made item costing US$10, when it is imported it will have an additional US$2 charge.

Businesses that import these items can decide whether to absorb the cost or pass some or all on to customers.

The US International Trade Administration in TT says customs duty is imposed on products coming into TT based on the fair market value of imported goods at the time it lands in the country.

Import prices for products are generally based on cost, insurance, freight and duty along with VAT, which is reduced to zero per cent for certain goods.

TT has also implemented Caricom’s common external tariff (CET) for goods from countries outside Caricom, with import tariffs going as high as 30 per cent for auto parts, DVD players and jewellery, and 20 per cent for other products.

TT’s tariff system fits in seamlessly with its foreign trade policy which also has bilateral investment agreements with the US, Canada, China, several countries in the EU, the UK and Mexico.

TT also has a preferential tariff arrangement with the US under the Caribbean Basin Economic Recovery Act, implemented in 1984 to allow products from beneficiary countries such as TT to export to the US without having to pay any duties.

TT, being in the middle of US/Venezuelan geopolitical issues, share close trade relationships with both countries.

The US State Department said in 2023, the US was TT’s largest trading partner, exporting US$5.4 billion to TT and importing US$3.5 billion in TT goods.