US 10% tariff will cause minimal harm to SVG- Gonsalves

The 10% baseline tariff implemented by the United States of America (USA) on goods from the Organisation of Eastern Caribbean States (OECS) and other countries is minimal in relation to St Vincent and the Grenadines (SVG), and not expected to do much harm.

According to a Reuters article on April 5, 2025, U.S.A customs agents began collecting President Donald Trump’s unilateral 10% tariff on all imports from a range of countries.

The initial 10% “baseline” tariff paid by U.S. importers took effect at U.S. seaports, airports, and customs warehouses on Saturday April 5, 2025 at 12:01 a.m. ET (0401 GMT), ushering in Trump’s full rejection of the post-World War Two system of mutually agreed tariff rates.

Tariffs make a country’s exports more expensive in the importing country,and this can lead to lower demand for those goods, as consumers may switch to cheaper, domestic alternatives or seek out imports from other countries.

As it relates to SVG, this country exports mainly fish/seafood to the USA, as well as some agricultural produce.

Speaking at a Cabinet Room press conference on Monday May 12, Prime Minister Dr Ralph Gonsalves said that SVG exports to the USA represent just 0.32% to 1% of this country’s Gross Domestic Product (GDP).

He said as a result of this minimal figure, a meeting held with Secretary of State, Marco Rubio on Tuesday, May 6, 2025 did not focus primarily on the tariff issue.

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