WASHINGTON, DC – PRIME Minister of St. Kitts and Nevis, Dr. Terrance Drew, has warned that the Federation may face economic turbulence as U.S. President Donald Trump’s tariffs begin to take effect.
Residents in St. Kitts and Nevis are likely to feel the squeeze through rising food and commodity prices, as well as delays in supply chains. The U.S. has imposed significant tariffs on Chinese-made goods and the vessels transporting them to American shores—measures that are expected to have far-reaching effects across the Caribbean.
“I would say that St. Kitts and Nevis, in one word, is that the cost of living will go up, and it will affect all of us negatively,” Dr. Drew said during an appearance on Freedom FM’s Issues on Tuesday (April 15).
The Federation, like many others in the region, remains heavily reliant on the United States for food imports, with the regional food import bill reaching approximately $6 billion annually. A newly imposed $1.5 million levy on any Chinese-made vessel entering the U.S. adds another layer of concern.
Since taking office in January, President Trump has sought to reshape trade relationships with countries holding trade surpluses with the U.S. This has led to sweeping tariffs on imports from several nations, particularly China.
This week, the Trump administration announced a proposed 245% tariff on Chinese goods—a move that could severely impact the availability and pricing of goods across the Caribbean.
Although direct trade between St. Kitts and Nevis and China is limited, the U.S. has proposed a blanket 10% tariff on imports that could significantly raise the cost of goods entering the Federation.
“We don't produce and export enough. And if we were to export enough, they'll be subjected to a 10% tariff if they go to the United States of America. Now, one of the things that's affecting us is that, one, the tariff will affect the whole globe. Therefore, prices will rise across the world. That's one.
“The second one that is being contemplated is that any Chinese-made ship or owned by China, any ship that touches the United States of America, there will be a charge of about $1.5 million. That means anything that is carried on that ship, everything goes up exponentially. That has nothing to do with the 10% tariff,” Dr. Drew explained.
The $1.5 million levy on Chinese vessels has raised alarm, particularly as many ships transporting goods to the Federation and the wider region are routed through the U.S.
Trevor Blake, President of the Chamber of Industry and Commerce, echoed concerns during a recent press conference when asked by SKNVibes about the impact of the new tariffs.
"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.
Regional leaders have also voiced their concerns. CARICOM Chair Mia Mottley recently commented on the potential ramifications, while Caribbean Hotel and Tourism Association (CHTA) President Sanovnik Destang highlighted the threat to the region’s fragile economic recovery.
“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.
