BRIDGETOWN, Barbados — The Caricom Private Sector Organisation (CPSO) has welcomed the United States’s decision to remove tariffs on key export sectors in this region, saying that the move has brought “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 noted in a news release that it had previously estimated that the reciprocal tariffs would cost Caricom member states US$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 Jamaica’s Prime Minister Dr Andrew Holness; Trinidad and Tobago Prime Minister Kamla Persad Bissessar; Guyana President Dr Mohamed Irfaan Ali; and Bahamas Prime Minister Philip Davis, all of whom engaged United States counterparts on the urgency of addressing the tariff measures affecting critical exports from the region.

According to the CPSO, it conducted a study which showed that the burden of the reciprocal tariffs fell most heavily on the agriculture & food and chemicals sectors, with estimated potential annual export revenue losses of US$117.7 million for agriculture and US$86.1 million for chemicals, the latter including fertilisers and other related industrial inputs.

The recent executive order, issued on November 14, 2025 by US President Donald Trump, eliminates the reciprocal tariffs and reverses the previous rates applied under America First trade measures.

“Among the products now exempted from the reciprocal tariffs are ammonia and urea ammonium nitrate (UAN), both essential fertilisers 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,” CPSO said in the news release.

The organisation noted that the US remains Caricom’s principal trade and economic partner, and the removal of the reciprocal tariffs will, therefore, contribute to the strengthening of the US-Caricom trade relationship.

It also explained that it made a submission to the United States trade representative during the US’s Caribbean Basin Economic Recovery Act Biennial Review Process, which was undertaken in July 2025, outlining the negative implications for Caricom’s export sectors due to the imposition of the reciprocal tariff regime.

Commenting on the change in the US position, Dr Antoine said: “This decision is both timely and consequential. It reinforces the competitiveness of Trinidad and Tobago’s exports in the chemicals sector, which includes fertilisers and related downstream products. It stabilises 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.”

He noted that even as the CPSO continues to undertake work aimed at measuring the impact of the remaining tariffs on regional exports, the removal of these key tariffs means that 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, CPSO added.

The CPSO said it 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.

It also stated its unwavering commitment 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”.