BASSETERRE, St. Kitts – THE Caribbean Hotel and Tourism Association (CHTA) has become the latest regional body to voice concern amid growing uncertainty following recent announcements by U.S. President Donald Trump.
The announcements include new tariffs on Caribbean territories and a $1.5 million levy on Chinese-made or flag-carrying vessels docking in the United States.
The region now faces the possibility of a sharp increase in commodity prices—including food—as the U.S. remains a major source market for goods consumed by Caribbean residents.
In response, the CHTA recently submitted feedback to the U.S. Trade Representative (USTR) and other American officials, proposing alternatives to the port service fees and tariffs. The organization is calling for a new strategy to strengthen and safeguard trade and travel ties between the Caribbean and the U.S.
In a media statement, the CHTA warned that the fees and tariffs “will significantly increase the cost of imports—raising costs for both land and cruise travelers—and ultimately reduce traveler demand and spending”.
While acknowledging the U.S. government’s intent to expand the use of U.S.-built cargo vessels, the CHTA cautioned against the policy’s unintended consequences, particularly its timing. The association presented data highlighting the importance of both land- and cruise-based travel to the economies of the U.S. and the Caribbean. It also outlined the challenges faced by U.S. and Caribbean shipping companies in transitioning away from Chinese-built vessels in the short term.
Regional economists have echoed these concerns, arguing that the tariffs and potential levies on Chinese vessels could have severe economic repercussions across various sectors—especially in smaller Caribbean states.
The new U.S. tariffs are also expected to affect the disposable income of American travelers, many of whom vacation in the Caribbean. CHTA President Sanovnik Destang acknowledged this risk, noting that the region’s tourism sector had only recently begun to recover from the pandemic.
“The region was beginning to see light at the end of the tunnel with many tourism-related businesses recovering from the tremendous impact the pandemic had on travel and tourism. Even as our industry has rebounded, we remain highly vulnerable to the high cost of operations—particularly food and beverages—driven largely by five years of inflation. One-third of our tourism-related businesses reported a net loss in 2024, according to CHTA’s annual performance study,” Destang said.
The CHTA joined with the CARICOM Private Sector Organization (CPSO) and key shipping stakeholders to advocate for the region. Together, they urged for exemptions from the proposed fees, highlighting the unique challenges faced by the region.
Countries and territories identified for exemption include: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Guyana, the Cayman Islands, Curaçao, Dominica, the Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Sint Maarten, St. Barthélemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, and Turks & Caicos. Puerto Rico and the U.S. Virgin Islands would be included as U.S. territories.
In St. Kitts and Nevis, concerns are mounting. President of the Chamber of Industry and Commerce, Trevor Blake, highlighted the potential impact of the US$1.5 million levy on the local cost of living.
"I mean, that could have a very, very heavy adverse impact on prices. Everything that is imported into the Federation is either—well, most things I should say—trans-shipped through the U.S. So that is of significant concern to all of us and should be," Blake said.
