Trump tariffs ‘very bad news’ for The Bahamas

Monday, February 3, 2025

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Donald Trump’s decision to levy tariffs on Chinese, Canadian and Mexican imports is “definitely very bad news” for Bahamians as it will likely increase prices for multiple goods, businesses warned yesterday.

The Bahamas Chamber of Commerce and Employers Confederation (BCCEC), in a statement responding to Tribune Business inquiries, said it harbours “deep concern” over the US president’s move to ignite a trade war given that it will may once again worsen the inflation and cost of living crisis that many Bahamian families are “already struggling with”.

The Bahamas, which imports virtually all the physical goods it consumes and has limited domestic production capacity, is especially vulnerable to the imposition of tariffs that Mr Trump first threatened during his election campaign. Many Chinese-origin good, in particular, which come to The Bahamas transit the US, as well as the Canadian and Mexican variety, thus exposing them to US taxes due to take effect tomorrow.

The Chamber, in a statement issued via its chief executive, Dr Leo Rolle, told this newspaper: “The BCCEC notes with deep concern the US government’s application of tariffs on goods from China, Mexico and Canada, and the tariffs applied by those countries in response.

“Given that the US is by far our largest trading partner, these tariffs have the potential to seriously impact the cost of some goods which are imported. The extent to which we will be impacted depends on the level of goods imported from the US which emanate from the countries on which tariffs have been applied.

“News reports indicate that the classes of goods likely to be most impacted include clothing, some agricultural products, electronics and spirits. It is very possible that we will see higher prices on these products in the coming months if the trade wars are allowed to proceed,” the Chamber continued.

“With Bahamians already struggling with inflation and the high cost of living, this is definitely very bad news. Anecdotal reports also suggest that US agricultural may also be negatively impacted by their new immigration policy, which may impact products grown in the US, further exacerbating the situation.”

The Trump administration’s aggressive illegal migrant deportation drive, which is touted as largely focusing on those with criminal convictions and records, may also sweep up, drive away and return the foreign labour upon which many US farmers rely. If this results in a loss of productivity and reduced supplies, it could drive up the costs of Bahamian food imports from the US.

To mitigate the fall-out, the Chamber reiterated: “The BCCEC has been working to identify other possible import markets which would allow Bahamian merchants to circumvent US middlemen and help bring down the cost of living, even prior to the implementation of these tariffs.

“We are also keen to see the development of local industries to reduce the reliance on external providers, especially with regard to food products. This will take a serious commitment from the Government and local producers.

“In recent months, the Government - through the Bahamas Trade Commission - has been working to identify alternative markets from which certain goods can be imported. The BCCEC is also working to assist its members connect with providers all over the globe. Our members in the logistics and cargo businesses stand ready to assist with access to new markets.

“It is our hope that the results of this work can be used to help make the necessary market connections. In any event, we will continue to monitor this developing situation and provide what ever assistance we can.”

Mr Trump at the weekend signed executive orders imposing 25 percent tariffs, which act as a levy or tax on goods as they come through the border, on all Canadian and Mexican imports despite the free trade zone agreement between those two nations and the US which was signed during his first presidency. In addition, Chinese imports face a 10 percent tariff, which all these measures due to take effect tomorrow.

Canadian energy exports to the US face a lower 10 percent tariff. But, amid fears that Mr Trump’s actions could be the spark that ignites a wider global trade war, with the European Union (EU) thought to be in his sights next, Ottawa has pledged to retaliate with 25 percent tariffs of his own on $20bn worth of US imports including tobacco, produce, household appliances, firearms and military gear.

And, if the situation does not calm down and gets resolved within the next 21 days, Canada is also preparing for a second, broader round of retaliatory tariffs that will target another $86bn worth of US imports. Mexico, meanwhile, is set to announce its own retaliatory tariffs on US imports today, while China is planning legal action over what it alleges is a violation of World Trade Organisation (WTO) rules.

Mark A. Turnquest, a corporate consultant and founder of the 242 Small Small Business Association and Resource Centre, previously told Tribune Business that The Bahamas could be plunged back into a renewed cost of living crisis if the US president-elect follows through on his pledge because this nation imports such a high quantity of Chinese manufactured products.

He estimated to this newspaper that “at least 60-70 percent” of products sold locally come from China “directly and indirectly” with a big portion transiting, or passing through, the US. Besides those that arrive on the US west coast, and are trucked cross-country to eastern ports, Chinese goods also transit the Freeport Container Port heading to the US before being returned to The Bahamas.

Mr Turnquest argued: “We have to bypass America and get goods directly from China.... We know there will be a reawakening of the shipping crisis we had a couple of years ago after COVID, but this will be done in the form of tariffs. We know when you tax one thing, you then have to tax another thing and then another thing.

“It will be a downward spiral with extra costs and fees,” he warned of the likely Bahamian impact from Mr Trump’s plans. “We are watching and hoping. We are very, very concerned and we don’t want this to happen. We cannot afford any type of extra inflationary impact with tariffs tacked on because we are already trying to control all sorts of extra costs.

“We are trying to continue to operate and all types of stuff. We don’t need an extra burden. We’re not concerned about Amazon in the short-run, but we are very concerned in the short-run because January 20 is coming and this means we are very concerned about the tariff strategy of Donald Trump,” Mr Turnquest continued.

“It’s going to be detrimental to our businesses. This is a death blow if the Trump tariff strategy is executed. We cannot take that. We cannot cover that extra burden. We just can’t. We hope they take that into consideration.”

Comments

Porcupine says...

Mr Turnquest,

Donald Trump cares about Nothing except himself.
If someone does not understand this they need to go back to school, or choose different parents.
Trump has no moral compass and is a malignant narcissist.
There is no human quality that Trump possesses that is beneficial to mankind. Not one.
There is not a truly educated person alive who believes that Trump is a smart, caring and moral man.
"Mark A. Turnquest, a corporate consultant and founder of the 242 Small Small Business Association and Resource Centre, previously told Tribune Business that The Bahamas could be plunged back into a renewed cost of living crisis if the US president-elect follows through on his pledge because this nation imports such a high quantity of Chinese manufactured products."
Excuse me Mr. Turnquest, but are you suggesting that The Bahamas is not presently in a cost of living crisis? Are you serious?
Yes, we are in for serious times here in 242.
Trouble is, we ourselves continue to vote for people to represent us that do not differ from Trump that much.

Posted 3 February 2025, 10:04 a.m. Suggest removal

quavaduff says...

You have tRump analyzed to a T. He backed off once the stock market dipped noticeably. tRump is a cowardly bully at best.... he is truly a deplorable human being. has the football player shown up yet? tRump despises and is frightened of intelligent Black people.

Posted 3 February 2025, 11:50 a.m. Suggest removal

ExposedU2C says...

President Trump sent the weak leaders of both Mexico and Canada scurrying with their tails between their legs. They now know they had better do whatever they possibly can to reduce the flow of illegal drugs and illegal aliens into the U.S. But I bet you still believe the Germans won both WW I and WW II. LOL

Posted 4 February 2025, 8:59 a.m. Suggest removal

moncurcool says...

It is just amazing how it took this for the government to talk about alternative trading partners.

Learned in maths that the shortest distance between two points is a straight line. Purchasing goods through a middleman always increases prices. If we are independent , as we like to say, why then do we not purchase direct? Would save us a whole lot of money locally.

But better yet, why don't we look at providing the environment to produce our own?

Posted 3 February 2025, 12:19 p.m. Suggest removal

Especially since we have the land and lots of unemployed people.

Posted 3 February 2025, 1:06 p.m. Suggest removal

As a small nation existing on limestone atolls, we will never have the kind of land that it takes to be food independent. And don't forget that we have many thousands of hungry illegal aliens and their ever increasing offspring to feed each day.

Posted 4 February 2025, 9:04 a.m. Suggest removal

JokeyJack says...

USA would not allow such a high level of trade with China. The tidbit we do now is simply frowned upon. What you are talking about would be blocked with military. Why don't you just up and move to China if you love communism so much?
Bahamians love high prices. Most actually believe that we don't pay taxes here except for VAT - LOL. People constantly say "Everything cool". So, it's cool.
Like Hubert Ingraham said "When Bahamians go to the gas station, they ask the man for $20 worth." When they pay their fuel surcharge on their BPL bill, it's no questions asked.
Graham Weatherford suggested putting a barge with a heavy oil generator below the PI bridge (a main uplink) but, of course, he is a white man so we ignore him and plod forward upward and onward together. Toward what? Well, higher prices and higher cost of living of course. How's that West End police station coming along? Still got numbers on your voting ballots? Of course. LOL

Posted 3 February 2025, 6:07 p.m. Suggest removal

LOL. The comments above display an unusually high level of anti-US sentiment driven by palpably severe cases of TDS. These commenters would have us believe all 77.3 million US citizens who voted for President Trump are nothing but duped imbeciles not worthy of breathing the same air the rest of breath on our planet.

Let's face it, who are we to be suggesting to the millions of US citizens who voted for President Trump that they are all poor judges of character and hence elected the wrong person to their highest office. That's the kind of silliness that makes one who is of weak character a bonafide contender for a severe case of TDS.

Posted 3 February 2025, 5:33 p.m. Suggest removal

JohnQ says...

President Trump is doing what he was elected to do. The open border, illegal immigration, and fentanyl were significant issues that American voters were/are deeply concerned about. After two weeks in office, sizable change is taking place. Which is what the vast majority of Americans want.

Posted 3 February 2025, 7:56 p.m. Suggest removal

So, what if Americans are as stupid as they get?
Arrogant, ignorant, selfish.
Describes some others I know, hey?

Posted 4 February 2025, 7:41 a.m. Suggest removal

You've been consuming too much highly toxic kool-aid my friend. Your apparent hatred of everything American seems to be only exceeded by @Birdie's hatred of everything FNM.

Posted 4 February 2025, 8:47 a.m. Suggest removal

I know my history. The true facts are there for all, who care to, see.

Posted 4 February 2025, 4:22 p.m. Suggest removal

sheeprunner12 says...

This is the time to open up a new mega port to counter USA trade dominance.

If Freeport or Grand Bahama can become the new Miami in the Western Atlantic, then we can get lower prices and reset the trade dependency on US ports.

Posted 3 February 2025, 8:55 p.m. Suggest removal

Dawes says...

Who would the goods be for? I assume they would ultimately go to the US so why come here?. The fact is we are insignificant in the great scheme of things. There are ships that can carry over 24,000 containers in one go, per the port we brought in just over 65,000 containers in 2019, so 3 ships and we are done.

Posted 4 February 2025, 10:32 a.m. Suggest removal

Bonefishpete says...

America's top diplomat Marco Rubio says he is now the acting head of the agency that distributes billions of dollars in aid around the ..

It's gonna get worse. Free money may be a thing of the past. Mr Rubio from Miami is fully aware of the shenanigans that have been happening in the Bahamas. You cannot allow the human smuggling to the US shores continue and expect no consequences. Build your Ports bring your imports in but be warned if you associate with China it will not be tolerated.
Canada and Mexico backed down but you do you.

Posted 3 February 2025, 10:49 p.m. Suggest removal

New Miami in the western Atlantic? You can't even keep the fire trucks running in Freeport. Lets not mention the white elephant of a a Hotel nobody wants to buy.

Posted 3 February 2025, 11:33 p.m. Suggest removal

Who ever said that the New Day crooks will open the new warehouse port???

We are talking about a private enterprise here.

Don't anyone remember when a former High Rock MP had a great plan to build a new Mall of America in GB???

If we have a "freeport" in GB, why not use it to our advantage????? If Trump wants to treat us like a shithole country, why do WE continue to take his shit?????

Posted 4 February 2025, 6:34 a.m. Suggest removal

In answer to your last question: Because Trump's shiit stinks a whole lot less than Xi's shiit and is much less harmful for our small nation and its people.

Posted 4 February 2025, 8:53 a.m. Suggest removal

Wow. Simply not paying attention to the rest of the world? Heard of BRICS.
See any of the UN votes? Trump is a loser who will take down anyone whom he touches. A little more thought and research before such flippant, and wrong statements, yes?

Posted 5 February 2025, 7:20 a.m. Suggest removal

The BRICS are already headed the way of OPEC. So are the Two-By-Fours, i.e. Mexico, Canada, Colombia and Panama. Our time is coming ....... President Trump, Secretary of State Rubio and Florida Governor DeSantis are each acutely aware of the role our corrupt senior politicians and their favoured greedy cronies in the private sector have been playing in our small nation's cozying up with the ChiComs. Some of the fatter classified dossiers the U.S. intelligence agencies have on Bahamians bear the names of Mitchell, Christie, Bethel, Maynard-Gibson, 'Snake', Bastian, Davis, Cooper, and so on.

Posted 5 February 2025, 10:50 a.m. Suggest removal

GodSpeed says...

Wish we had a leader like Trump, someone whose personal networth doesn't magically skyrocket by being in office and is a common sense nationalist.

Posted 4 February 2025, 10:20 a.m. Suggest removal

How is a nationalist any different than a racist?
Missed the Divide & Conquer part of the lesson?

Posted 4 February 2025, 4:24 p.m. Suggest removal