Jamaica Actively Engaging with the U.S. on 10% Baseline Tariff
“We are actively engaging with the United States Trade Representative and other relevant authorities to seek urgent clarification.”
– Prime Minister Holness
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Prime Minister Dr. Andrew Holness, says government of Jamaica is actively engaging with the United States to seek clarification on the recently announced 10% baseline tariff on imports, set to take effect on April 5, 2025.
The move by the United States could potentially significantly impact Jamaica’s trade with its largest trading partner as nearly 90% of Jamaica’s exports enter the U.S. market under preferential terms through the Caribbean Basin Initiative (CBI).
Speaking last night (April 4, 2025) at the opening ceremony of Jamaica Manufacturers and Exporters Association (JMEA) Expo 2025, Prime Minister Holness emphasized that the government is actively working to safeguard Jamaica’s interests and mitigate any potential negative effects on the economy.
“While the government of Jamaica has not yet received formal notification on the precise implementation procedures, including whether these new tariffs will override existing CBI provisions, we are actively engaging with the United States Trade Representative and other relevant authorities to seek urgent clarification. We are also conducting a detailed technical assessment, in collaboration with relevant ministries and agencies, to fully understand the scope of these tariffs and their implications for Jamaica’s trade and industrial policy,” stated Prime Minister Holness.
In this regard, the Prime Minister underscored that the government is committed to ensuring that the tariff imposition does not erode the long-standing, robust relationship between Jamaica and the United States.
“It is important to emphasize that these developments do not reflect any erosion in the long-standing and strong bilateral relationship between Jamaica and the United States. Rather, it reflects a broader recalibration of U.S. trade policy that is global in scope. Still, we will use every available diplomatic channel, including working with our CARICOM brothers and sisters and utilizing the Office of Trade Negotiations, to seek to preserve the positions our exporters have secured over decades of deepening trade ties with the United States,” stated Prime Minister Holness.
The government is pursuing a range of options to protect the interests of Jamaican manufacturers and exporters.
Preliminary analysis indicates that some of Jamaica’s top exports may fall under exempted product categories.
Dr. Holness said the government is working to confirm these exemptions and explore potential opportunities for expanding them.
Prime Minister Holness further assured local businesses that the government is being very strategic and careful as it navigates to make the best of the changes to come.
“I play chess, not draft. So, to our manufacturers, before I say that, maybe a decade ago, the word disruptive would have been an inherently bad thing. In today’s world, you require disruption of systems for there to be innovation and new opportunities. So, whilst we see the downside of the disruptive global order that we have now, we are not going to sit by and wait. There are opportunities that must be had. There are prospects to be uncovered, and so I urge my manufacturers, my businesspeople, before you start to look at the negative, also look for the opportunities,” declared Prime Minister Holness.
In the meantime, the government remains focused on ensuring that the nation’s economic resilience continues to thrive in the face of global challenges.