The Caribbean Hotel and Tourism Association has urged President Donald Trump to exempt 27 Caribbean nations and territories from tariffs that the group said could hinder economic growth and put an undue burden on tourism-reliant areas.
Trump slapped most of the Caribbean with 10 percent tariffs — while oil-producing Guyana was reportedly hit with 37 percent tariffs. Maybe more significant was the proposed fee on Chinese-made or Chinese-flagged vessels visiting U.S. ports. A $1.5 million tax could significantly raise the price of doing business in the Caribbean as most goods are imported by cargo ship, Sanovnik Destang, the association’s president, said Monday.
“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,” said Destang. “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,” he added.
Destang appealed to the U.S. Trade Representative, calling for exemptions from the proposed fees for the region and for protection of smaller shipping companies that serve the Caribbean. The U.S. is the largest supplier of food products to the Caribbean, with food and beverages representing the highest input costs. Up to 80 percent of these goods are delivered by ships from the U.S., Destang said.
Caribbean states within the proposed exemption would include: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Guyana, Cayman Islands, Curaçao, Dominica, Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, St. Maarten, St. Barthélemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, and Turks & Caicos.
Puerto Rico and the U.S. Virgin Islands would be included as U.S. territories.
British Virgin Islands Premier Natalio Wheatley also warned of fallout from the tariffs, saying the cargo fees and escalating talks of trade wars could dramatically raise prices in the BVI.
“We are actively engaging with key stakeholders from across industry and will be meeting with business leaders and retailers over the coming days to ensure our response protects the needs and interests of BVI consumers as effectively as possible,” Wheatley said in a written statement. “Safeguarding the economic interests of the Virgin Islands is our utmost priority, and we will continue to do all we can to ensure the stability of our economy and the prosperity of our society.”
Tourism contributed an estimated $91.2 billion to the region’s economies in 2024 and generated over 2.9 million jobs, Destang said, quoting statistics from the World Travel and Tourism Council. In 2024, the region welcomed more than 68 million visitors — half via cruise ships and half through stays in hotels and other accommodations, he said.
Stayover visitors to the Caribbean contribute an estimated $944 — directly and indirectly — toward incremental U.S. imports, totaling approximately $6.2 billion in U.S. exports to the Caribbean in 2023. Each cruise visitor contributes an estimated $23 toward U.S. imports, totaling approximately $0.3 billion in U.S. exports to Caribbean countries in 2023, Destang said.
“Given the clear mutual advantages to both the U.S. and the Caribbean of a vibrant Caribbean hospitality and tourism industry, and in the spirit of mutual collaboration, long-standing benefits from trade and tourism, and our shared commitment to free enterprise and democracy, we are hopeful that our recommendations are considered and adopted for our mutual benefit,” said Destang.
