Bridgetown, Barbados – The CARICOM Private Sector Organization (CPSO) welcomes the decision of the United States to remove tariffs on key CARICOM export sectors, bringing important relief to regional industries that had been negatively affected by the reciprocal tariffs implemented in April 2025 and updated in August 2025. The CPSO had previously estimated that the reciprocal tariffs would cost CARICOM Member States USD 653.6 million in export revenue annually, with the largest exposures concentrated in the ‘Base Metals’, ‘Agriculture & Food’ and ‘Chemicals’ sectors.
CPSO Chief Executive Officer and Technical Director Dr Patrick Antoine noted that the coordinated advocacy of CARICOM Heads of Government played a pivotal role in securing the withdrawal of the reciprocal tariffs. He highlighted in particular the work of CARICOM Chairman and Prime Minister of Jamaica, Dr the Most Honourable Andrew Holness ON, PC, M.P., Prime Minister of the Republic of Trinidad and Tobago, the Honourable Kamla Persad Bissessar, S.C., M.P., President of the Co-operative Republic of Guyana, His Excellency Dr Mohamed Irfaan Ali, and Prime Minister of the Commonwealth of The Bahamas, the Honourable Philip Davis K.C., M.P., all of whom engaged United States counterparts on the urgency of addressing the tariff measures affecting agriculture, chemicals and other critical exports.
The burden of the reciprocal tariffs fell most heavily on the ‘Agriculture & Food’ and ‘Chemicals‘ sectors with the CPSO Study estimating potential annual export revenue losses of USD 117.7 million for Agriculture and USD 86.1 million for Chemicals, the latter including fertilizers and other related industrial inputs.
The recent Executive Order issued on November 14, 2025, by President Donald Trump eliminates the reciprocal tariffs and reverses the previous rates applied under the America First trade measures.
Among the products now exempted from the reciprocal tariffs are Ammonia, Urea Ammonium Nitrate (UAN), both essential fertilizers widely used across global agriculture, as well as methanol and selected agri-food products. Trinidad and Tobago, which is CARICOM’s leading industrial and manufacturing exporter, had been the Member State most affected within the Chemicals sector and stands to benefit significantly from the withdrawal of the US tariffs.
The US remains CARICOM’s principal trade and economic partner. The removal of the reciprocal tariffs will, therefore, contribute to the strengthening of the US-CARICOM trade relationship. During the US’ Caribbean Basin Economic Recovery Act (CBERA) Biennial Review Process, which was undertaken in July 2025, the CPSO made a submission to the United States Trade Representative (USTR) outlining the negative implications for CARICOM’s export sectors of the imposition of the reciprocal tariff regime.
In commenting on the change in the US position, Dr Antoine stated that, “This decision is both timely and consequential. It reinforces the competitiveness of Trinidad and Tobago’s exports in the Chemicals sector, which includes fertilizers and related downstream products. It stabilizes key agricultural and agro processing supply chains across CARICOM and provides targeted relief where it is most needed. For Jamaica, a major exporter of agricultural products to the United States, this relief comes at a critical moment, as the nation’s agricultural sector requires all possible support to rebuild its production infrastructure in the wake of Hurricane Melissa.”
Dr. Antoine added, “This outcome demonstrates that when the Community acts in a unified and coordinated manner toward a shared purpose, positive outcomes are achieved for the people of CARICOM. The November 14, 2025, Executive Order while reflecting US domestic priorities, also reinforces the credibility of the CARICOM as a key interlocutor with the United States and highlights the importance of aligning regional positions in pursuit of common purposes.”
Even as the CPSO continues to undertake work aimed at measuring the impact of the remaining tariffs on regional exports, Dr. Antoine noted that with the removal of these key tariffs, a substantial portion of CARICOM’s exports to the United States will benefit immediately. Several categories of imports from the United States into CARICOM that evidenced cost increases due to the increased cost of non-US raw materials and components are also expected to now reflect cost reductions.
While the CPSO welcomes the removal of the tariffs on a substantial part of the region’s agriculture and Chemical exports, the organization will continue to work with the CARICOM Heads of Member States to assist with the elimination of the remaining tariffs affecting CARICOM’s exports to the US. The CPSO remains committed to supporting CARICOM Heads of Government and the regional private sector in advancing solutions that strengthen trade facilitation, enhance competitiveness and bolster long-term economic resilience.
-END-
About the CARICOM Private Sector Organization:
The CARICOM Private Sector Organization (CPSO) is an Associate Institution of the Caribbean Community. The CPSO is a ‘Service Organization’ with a goal to mobilize and advance private sector participation in CARICOM, with a mandate to contribute to the full implementation of the CARICOM Single Market and Economy (CSME). The Membership of the CPSO is comprised of private sector entities operating in the CARICOM space, including Micro, Small and Medium Sized Enterprises (MSMEs).
For media enquiries, please contact:
The CPSO Secretariat Email: info@thecpso.org | website: www.thecpso.org
