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“Uncertain times” says PM Holness as Jamaicans react to new US Tariff

The Jamaican government is still seeking “urgent clarification” on the new United States tariff regime from US trade representatives and authorities, prompting Prime Minister  Andrew Holness to declare that there are uncertainties.

“Yes, it is uncertain times, but we have done the necessary work. We have built the relationships; we have placed ourselves in strategic positions to be heard and to be heard from and to be consulted. When these changes are going to happen, we know that they could have long-term impact; we started planning long ago,” the Prime Minister said.

This assurance comes following the US government recently announced 10 per cent baseline tariff on imports from all countries, that was set to take effect on April 5, 2025. The potential implication for Jamaica is still being assessed.

“To our manufacturers and exporters, we understand the uncertainty this announcement has created and we are with you every step of the way. You are not only integral to our economic strategy, you are national champions of our resilience and ingenuity,” Holness stated at the opening of EXPO Jamaica 2025 at the National Indoor Sports Centre in Kingston on April 3.

Despite the prime minister’s assertion that Jamaica has placed itself in a position to be consulted, there was no update from the government up to April 8 as to how the country will be affected by the tariffs. It is not known if the government has received any formal clarification from US officials.

Like other CARICOM nations, Jamaica has traded with the US under the Caribbean Basin Initiative (CBI), which provides non-reciprocal duty-free access for a wide range of products to the US market.

“Today, nearly 90 per cent of Jamaican exports to the United States enter under these preferential terms; however, the new US tariff regime, rooted in a broader policy of reciprocal trade balancing, has raised serious concerns about the future of these preferential arrangements,” Holness noted.

He said Jamaica is conducting a detailed technical assessment, in collaboration with relevant ministries and agencies, to fully understand the scope of the tariffs and their implications for Jamaica’s trade and industrial policy.

Holness also asserted that the developments do not reflect any erosion in the long-standing and strong bilateral relationship between Jamaica and the United States. Instead, he believes it reflects a broader recalibration of US trade policy that is global in scope.

“Still, we will use every available diplomatic channel, including working with our CARICOM brothers and sisters and utilising the Office of Trade Negotiations, to seek to preserve the position our exporters have secured over decades of deepening trade ties with the United States,” Holness said.

The Prime Minister said the government will be working with manufacturers and exporters to explore new opportunities, even as he urged them to do likewise.

“There are prospects to be uncovered, and so I urge my manufacturers, my businesspeople, before you start to look at the negative, also look for the opportunities. Don’t just sit down and complain about all the things that’s going on and all the things that’s going bad, expecting that Government is going to solve all the problems for you. Be the entrepreneur; be the one who is the risk-taker, and be the one who is looking for the opportunity,”  Holness said.

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