By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

One Bahamian exporter yesterday said they are more concerned about the impact Donald Trump’s tariffs will have on the cost of imports to this nation as opposed to the 10 percent levy on their own US exports.

Pepin Argamasilla, managing director of John Watling’s Distillery, an exporter to the US, said that in the short-term they have escaped the worst impact from the US president’s trade policies but are more concerned how these will impact the cost of imports to The Bahamas.

“Luckily we had a big order that went a month ago, so we kind of skirted the tariffs for the time being,” Mr Argamasilla said. “It’s concerning, but more so than the export concerns, on items coming into The Bahamas, how they will potentially increase costs. We import bottles, labels and all that fun stuff. The concern is probably more on what lands in The Bahamas as opposed to what is actually exported.

“You keep on exporting and, at the end of the day, if there needs to be a price adjustment, there needs to be a price adjustment. And then, hopefully, there’s still pull for the brand, and hopefully we remain in the 10 percent tariff. If we don’t, hopefully the tariffs go away in a few months. Right now, we just need to wait it out and see what happens.”

Mr Argamasilla said shipping should try to avoid tariffs and the proposed US fee on Chinese-made vessels by unloading their cargo in Freeport instead. When asked about changing suppliers to those outside the US, he added simply that the majority of trade ends up touching the US.

“What would be interesting, though, is instead of going straight to the US and then shipping to The Bahamas, it’d be interesting if ships would go, let’s say to Freeport, and that way you avoid the tariffs from the US,” Mr Argamasilla said. “So I think there’s a lot of different things that The Bahamas can do. It’s just a matter of doing it.

“And it’s not even suppliers outside of the US, because the majority of trade goes through the US to The Bahamas. I think this was a learning experience after the pandemic that you have to have different trade routes and different suppliers to be able to make sure that you’re not cut off at any one point. So, it’s really having two suppliers for the same thing and hoping that both don’t lock down at the same time.”

Describing the Prime Minister’s recent speech regarding the tariffs as “taking a prudent approach, Mr Argamasilla said he hopes negotiations can produce a solution where “it doesn’t cost us any taxes or anything to import our rum into the US”.

“I think he’s taking a prudent approach,” Mr Argamasilla said of Philip Davis KC. “Again, I think a lot of this is beyond The Bahamas, let’s say. I think there’s larger fish that are being fried, to put it. We just need to wait it out and and see what happens.

“I’m really not that concerned for the simple reason that everybody’s price is going to go up. Everything’s going to go up by that percent, or it’s going to be absorbed, so I believe and I hope this is something that’s just temporary; that we’re going to have to adjust to temporarily.

“And I hope that the US is able to negotiate with other countries and really resolve this tariff issue, whereby everybody is playing on a level playing field. The same way that right now we’re importing, we’re exporting our rum into the US at a 10 percent tariff. You know, I’d love the Prime Minister to negotiate that it doesn’t cost us any taxes or anything to import our rum into the US. And I think that’s what hopefully will come about from all this.”

Mr Davis, in a statement issued on Wednesday night, said the Government is examining ways “to cushion the fall-out” for Bahamian exporters. “A new 10 percent base rate tariff for goods imported into the US now applies to more than 100 countries, including ours. Other countries are also subject to additional or higher tariffs,” the Prime Minister said..

“If the 10 percent tariff on Bahamian goods imported into the US remains, Bahamian exporters in multiple industries will soon feel the impact. We have been in contact with US officials regarding the change in policy, and we are working with fellow Caribbean countries on collective diplomatic efforts.

“We are also speaking with Bahamian exporters and working to understand whether there are short-term policies we could enact to cushion the fallout. My government has taken trade diversification seriously from the start – which means that for the first time, our country has in place an agency dedicated to expanding trading opportunities, and a national trade policy,” he added.

“Significant efforts to create new trade relationships were already underway, and those efforts will now be intensified.”