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The Cabinet of Antigua and Barbuda has been in deep discussions recently regarding the potential effects of a new US policy to impose tariffs on ships built in China that dock at American ports.
US President Donald Trump seems poised to expand his criticism of global economic integration by introducing new multimillion-dollar fees on Chinese container ships that transport numerous foreign goods to U.S. ports.
These proposed fees aim to address what the administration characterizes—reflecting the stance of its predecessor—as unjust trade practices by China that have allowed Beijing to dominate the construction of commercial vessels.
During an appearance on the Browne and Browne show last Saturday, Prime Minister Gaston Browne, who chairs the Cabinet, expressed concern that this policy could negatively impact the nation’s economy, especially by exacerbating the already high inflation citizens face.
The proposed US measures include significant fines, possibly reaching up to $1.5 million, on vessels manufactured in China or those from fleets that include such ships. PM Browne shared that analyses suggest that the cost of shipping a container could rise by approximately $3,000 to $4,000.
If this occurs, it could lead to an increase in consumer prices by 8 to 10 percent, which would further aggravate the current inflation rate of about 4.5 percent, pushing it potentially up to 12 or 14 percent.
The Prime Minister warned that the ramifications could be detrimental not only to the national economy but also to consumers at large.
The Cabinet has been exploring various options for responsive actions should this levy take effect. Concurrently, discussions are underway within CARICOM, with the Chairman of CARICOM, Prime Minister Mia Mottley of Barbados, being tasked to communicate with US President Donald Trump regarding the far-reaching implications this stand could have on the Caribbean region, which it could severely destabilize.
Browne emphasized the need for a ‘carve out’ under the Caribbean Basin Initiative (CBI), arguing that one of its goals is to promote economic and social stability in the region.
He pointed out that the United States should be mindful of its southern ‘third border’ and consider the unintended consequences of its policies on Caribbean nations.
The Prime Minister asserted that the region does not wish to become embroiled in the geopolitical tensions between the US and China but believes it is crucial for the US Administration to engage with Caribbean leaders to ensure that their concerns are addressed, and that CARICOM countries receive favorable treatment in light of these developments.
PM Browne assured that both local and regional authorities are closely monitoring this situation and taking it seriously.
The US will do anything to frustrated China..China will still be more prosperous than the US. Long live China
That’s true. There will be ramifications no doubt.
They will blame Gaston for that too
When we were going through the economic down turn and things were getting hard for us is the other party Got the blame for that.Infact Gaston himself blame the other party for what was happening globally.
Is this the preamble for the next set of taxes?