Bahamas govt responds to Trump reciprocal tariffs

US President Donald Trump unveiled a new tariff package that imposes reciprocal tariffs on more than 180 countries, including The Bahamas, marking one of the most significant tariff actions taken by the U.S. in recent decades.

The tariffs, set at a baseline rate of 10%, will affect nations that currently enjoy duty-free exports to the United States under the Caribbean Basin Initiative (CBI).

In his announcement, President Trump stated that the new tariffs are designed to level the playing field, ensuring that U.S. exporters receive equal treatment when trading with nations that benefit from favorable trade terms with the U.S.

The Bahamas, which has long enjoyed preferential trade terms with the U.S. under the CBI, now finds itself facing a 10% tariff on exports to its largest trading partner.

This new tariff is likely to have significant economic implications for The Bahamas, which has a long-standing trade deficit with the United States.

The Bahamas government has responded to the announcement, with the Office of the Prime Minister issuing a statement acknowledging the new tariff policy. "The Government of The Bahamas has taken note of the announcement by U.S. President Donald Trump to impose a 10% reciprocal tariff on several Caribbean countries, including The Bahamas, that export duty-free to the United States under the Caribbean Basin Initiative (CBI)," the statement read.

OPM continued, "It is important to note that The Bahamas currently maintains a trade deficit with the United States. We will engage with our U.S. counterparts and work collectively with our CARICOM partners in response to this development."

To mitigate the potential economic fallout, the government highlighted its ongoing efforts to diversify the nation’s trade relations.

“The Government has approved a National Trade Policy aimed at diversifying trade. As part of our broader strategy to protect the Bahamian economy, we have already announced a number of measures, including the development of a trade diversification framework. We remain focused on minimizing the impact of global trade decisions on Bahamian businesses and consumers,"