By RASHAD ROLLE

Tribune News Editor

rrolle@tribunemedia.net

PRIME Minister Philip Davis warned that newly announced US tariffs have placed The Bahamas in “unchartered territory,” with potentially serious consequences for local exporters, the cost of living, and the tourism sector.

The United States’ sweeping ten percent base tariff on goods from more than 100 countries — The Bahamas included — could lead to fresh inflationary pressure, Mr Davis said, aggravating already high prices at home and threatening economic momentum.

“The new tariffs are likely to cause new inflationary pressures, which would mean higher prices for Bahamian consumers,” he said in a statement. “For a country like ours, higher prices will add to what is already an unbearably high cost of living.”

Mr Davis said he would not “sugarcoat the dangers” posed by the sharp escalation in global trade tensions. “We may be in unchartered territory,” he said, “but we know how to survive storms.”

He said the government has already contacted US officials and is working with other Caribbean nations on a collective diplomatic response to the tariffs. Locally, officials are consulting with Bahamian exporters to assess the impact and explore short-term policies to soften the blow.

A key concern, he said, is that reduced demand from American buyers — who currently account for the majority of exports — could ripple through multiple Bahamian industries. He also raised alarms about a possible US economic slowdown, which would affect the country’s vital tourism sector.

In view of the challenges, he pointed to government’s steps to better position the country, including establishing a national trade policy and a dedicated agency to diversify trade opportunities.

 He also said efforts to lower prices through long-term reforms remain on track. He cited the recent signing of additional agreements to expand solar energy and upgrades to the electricity grid, which he described as “much-needed and long overdue.”

 “Our country’s first nationwide, comprehensive energy reforms are underway,” he said. “I’m thankful we will face this new crisis with these crucial price-reducing energy reforms in motion.”

 He said a reduced VAT rate on food and efforts to increase local food production are part of the broader plan to ease economic burdens on families.

 His statement comes days after Moody’s upgraded the country’s credit outlook to positive for the first time in nearly two decades. While Mr Davis welcomed the development, he acknowledged Moody’s warning that The Bahamas remains highly vulnerable to external shocks.

  He concluded by appealing to Bahamians’ resilience.

 “We have always found a way to create opportunities out of uncertainty,” he said. “As one nation, together, we will pursue a constructive path forward.”