Former Prime Minister Ralph Gonsalves states that the flat 15% U.S tariff will have a significant negative impact on St. Vincent and the Grenadines, primarily through increased inflation.
The 15% rate applies not only to items manufactured in the US but also to goods transshipped through the United States, which will now attract the additional cost.
Gonsalves emphasizes that while the previous 10% tariff had specific impacts, this “flat 15 to everybody” is more widespread. He describes the situation as “problematic” for the country’s economy.
He notes that the tariff is not expected to heavily affect St. Vincent’s exports to the US, which he describes as “niche exports” at the margin.
The current 15% tariff is intended to be a temporary measure lasting 150 days (five months). It was implemented by President Trump using alternative legal mechanisms after the US Supreme Court ruled that the International Emergency Economic Powers Act did not authorize him to impose unilateral tariffs.
Gonsalves also criticizes the current St. Vincent government for its silence on the matter, arguing they have failed to analyze or explain to the public how these international legal developments affect the local cost of living.