US tariff another nail in coffin for Trinidad and Tobago business

THE EDITOR: With the recent announcement of the ten per cent US tariff imposed on TT, we witness yet another nail being driven into the coffin of our tradable sector.

At a critical juncture, when this sector's importance cannot be overstated due to our dwindling foreign exchange reserves, now at their lowest levels in decades, we find ourselves entrenched in an economic quagmire.

The US, our largest trading partner, has implemented a tariff that will severely hamper our ability to export, making our products more expensive in American markets. This inevitably means reduced revenue and further challenges in securing vital foreign exchange.

However, the consequences extend far beyond the immediate loss of export revenue. As demand for our goods and services in the US market declines, local industries that primarily depend on these exports will undoubtedly suffer. Reduced demand will prompt these companies to scale back production, consequently requiring fewer resources and resulting in further job losses.

Already, approximately 50,000 fewer people are employed compared to 2015, a figure that will only worsen given this new development. This scenario will further depress our overall output, already a staggering 20 per cent lower than in 2015.

Ordinarily, lower production might result in lower prices. However, TT finds itself trapped between a rock and a hard place. Due to this government's consistent failure to foster meaningful local production that could buffer against external shocks, we remain heavily reliant on imports.

As prices rise in the US and we continue importing from that country, the ripple effect of increased prices abroad translates directly into higher domestic costs. This means we are facing a troubling combination of rising unemployment, escalating inflation, and stagnant economic growth.

Moreover, because this administration has consistently failed to develop new revenue streams or explore alternative markets for earning foreign exchange, maintaining the stability of our currency will become increasingly difficult. The reduction in foreign exchange reserves, coupled with diminished export earnings, places immense pressure on maintaining the value of the TT dollar.

Interestingly, Stuart Young went to Jamaica and met with US Secretary of State Marco Rubio, and we have no idea if Young was informed about this tariff beforehand or if he knew and chose to say nothing to the citizens of TT.

If he was surprised by this development, then exactly what did he discuss with Rubio, given that the Dragon gas deal is dead, a tariff is now levied on our nation, and the US has simultaneously issued a level-three travel advisory recommending its citizens reconsider travelling to TT?

Whether he knew of the impending tariff or was clueless, this incident confirms that Young is the wrong man for the job. He is now insisting that he will will negotiate with the US on behalf of TT. Given his last negotiation and the destructive results to our nation, I urge citizens to vote wisely to prevent him from destroying our country. Elections have consequences.

DAVENDRANATH TANCOO

MP, Oropouche West