PORT OF SPAIN, Trinidad (CMC) –  The Caricom Private Sector Organisation (CPSO) is warning that the decision by the United States to increase Trinidad and Tobago’s reciprocal tariff rate from 10 to 15, could result in the most severe, absolute impact upon any of the 15 member Caribbean Community (Caricom) member state.

“Trinidad and Tobago was already the most exposed Caricom economy under the reciprocal tariff regime,” said CPSO chief executive officer and technical director, Patrick Antoine.

“This adjustment not only increases the scale of potential losses, but it does so in sectors that are vital to our industrial capacity and to US manufacturers who rely on our exports for input,”  Antoine said, linking also the development to a broader erosion of Caricom’s historic trade position with the US.

“In our recent submission to the US review of the Caribbean Basin Initiative (CBI), we highlighted that these new tariffs erode the preferential access that has underpinned our economic partnership with the US for decades. That erosion is now accelerating,”  he said.

Antoine said that the America First policy and the April imposition of reciprocal tariffs were the wake-up call for the region and that this latest adjustment to 15 per cent is the signal of the need for rapid, coordinated action to safeguard competitiveness.  He said such action must be built on proven models of collaboration:

“The joint regional and private sector position that secured exemptions for China-built ships and short- sea shipping for the

“Now is the time to apply that same resolve,  to protect current trade flows, engage the US on tariff differentials and position Trinidad and Tobago and Caricom for long-term strength in a more contested global market.”

The CPSO noted said that it is noteworthy that prior to the imposition of the April 9 tariff of 10 per cent, Caricom member states benefitted from duty free access to the US market under the CBI.

It said the increased tariff rate of 15 per cent, which took effect from August 7, comes just months after Trinidad and Tobago had been assigned the 10 per cent baseline rate which was introduced in April 2025 as part of the America First trade policy.

“CPSO modelling now projects US$291.9 million in potential annual export revenue losses for Trinidad and Tobago, up from US$194.6 million under the 10 per cent baseline rate. This figure widens the gap between Trinidad and Tobago and other Caricom member states in terms of the potential export losses to be incurred as a result of the US measure.”

CPSO said that over two-thirds of the estimated losses expected to be suffered by Trinidad and Tobago are concentrated in two sectors, namely base metals and articles (US$199.3 million) and chemicals (US$74.8 million).

The base metals category is largely composed of various forms of iron and steel products which are widely used in the United States across construction, automotive and manufacturing industries.

The chemicals category includes products such as anhydrous ammonia, methanol and urea which are critical inputs for fertiliser production, plastics and other industrial processes. The CPSO said that together, these exports from Trinidad and Tobago anchor the country’s industrial capacity and also feed into US supply chains that rely on competitively priced raw materials.