THE EDITOR: The echoes of history are growing louder – and the Caribbean must pay attention.
Ninety-five years ago, the US passed the Smoot-Hawley Tariff Act of 1930, raising duties on thousands of imported goods. Intended to protect US jobs during a time of economic distress, it instead triggered global retaliation, collapsing trade flows and deepening the Great Depression.
Fast-forward to April 2: US President Donald Trump announced sweeping new tariffs – ten per cent on all imports, with even higher levies on countries like China. Framed as “economic independence,” this move threatens to ignite a new global trade war. For large economies, this is a political chess game. But for the Caribbean, it’s an existential threat.
As Barbados Prime Minister Mia Mottley, chair of Caricom, rightly warned, Caribbean economies – still recovering from the pandemic and battling a cost-of-living crisis – are dangerously import-dependent. Most goods on our shelves come from or pass through the US. These new tariffs are not just an American issue; they will hit us in our purses and our pantries.
Higher US tariffs on imports from China and others mean increased prices on consumer goods, electronics, vehicles, and food – costs that will be passed down to Caribbean households. Add possible retaliatory measures from other trade powers, and we face serious supply chain disruptions and inflationary pressures in every corner of the region.
We must not dismiss this as a problem "over there." Smoot-Hawley taught us that trade wars do not stay confined. The ripple effects devastate small, open economies first – and hardest. In 1930, global trade fell by nearly 65 per cent. Today, we risk similar contraction if retaliatory tariffs escalate and markets freeze.
Mottley is right: we must act. First, we must renew dialogue with US policymakers, emphasising that the Caribbean is not the problem – we are their neighbours, partners, and often, family. Second, Caricom must fast-track its own food and produce security agenda, accelerating initiatives like 25 x 2025 (now 25 x 2030) to reduce food imports. Third, we must expand trade ties beyond traditional partners and deepen South-South co-operation, especially with Africa and Latin America.
This moment demands regional unity, not political point-scoring. It is a test of our resilience, but also a reminder: if we fail to act collectively, we will pay the price individually.
Let Smoot-Hawley serve not as a history lesson, but a warning. Protectionism does not protect the small – it punishes them. The Caribbean cannot afford to wait.
THERESE BAPTISTE
via e-mail
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