- NEWSDAY.CO.TT - A la Une - 26/Jun 09:33

Tariff talks: Unlocking growth opportunities

AS SHIFTING US tariff policies reshape global trade, Caribbean exporters are racing to protect their margins and secure new opportunities in a tightening market. That was the central message of American Chamber of Commerce (AmchamTT) webinar, Tariff Talks: Navigating Costs and Opportunities, the second instalment in the Market Access Series (MAS) on June 18 in partnership with Trade Trek USA. The session, featuring Port Miami’s vice-president of global trade and business development Sonless Martin and Intermodal Cargo Development Officer Stanley Rigaud, delivered practical, real-time insights into how evolving US trade barriers are affecting regional exporters and how strategies like foreign trade zones (FTZs) and nearshoring can help counter rising costs and open new commercial channels. The US is once again tightening and rapidly adjusting tariff policies under President Donald Trump’s second term, with new measures and executive orders fluctuating in recent months as his administration moves to protect American industries and reshape global trade dynamics. As Martin explained, "The president of the US plays a central role in our trade decisions by directing policy, imposing tariffs and guiding negotiations to prioritise American economic interests." Congress and agencies such as the US Trade Representative’s office, Customs and Border Protection (CBP) and the Department of Commerce help formalise and enforce those measures. Key trade legislation, notably Section 301 of the 1974 Trade Act and Section 232 of the Trade Expansion Act, empowers the US government to impose tariffs on imports deemed a threat to national security or American commerce. Among the Caribbean, a flat ten per cent tariff rate on most imports has become standard, with specific categories like steel attracting an additional 25 per cent duty. Aircraft parts, critical to TT’s aviation infrastructure, have also been affected by tariff adjustments. "We recognise where those commodities are and what the focus is," said Martin. "We added aircraft parts as part of the commodities that we’re closely looking at that TT imports on a regular basis." Trade volumes reflect market shifts Martin presented figures showing that Port Miami remains a vital conduit for Caribbean trade, ranking TT as the port’s fourth-largest regional partner, with trade valued at approximately US$457.6 million for fiscal year 2024. Trade volumes fluctuated markedly during the pandemic. "TT consumers and businesses rapidly shifted to online shopping during the pandemic," Rigaud noted, with container traffic rising sharply in 2020-2021 before normalising. "This is not unusual – we saw a spike throughout the globe." Furniture, prepared food, eggs and knitwear are among the leading commodities moving between TT and Port Miami, with Martin highlighting some unique niche sectors. "Carnival costumes are often shipped through Port Miami – from Miami-based designers to Trinidad in February and from Trinidadian artisans to diaspora carnivals in the US." FTZs: A strategic advantage The advantages of foreign trade zones (FTZs) in countering tariff-related cost pressures featured prominently in the presentation. Port Miami oversees Foreign Trade Zone 281 – one of four in Miami-Dade County – which allows businesses to store imported goods in a duty-free designated area until they are either exported or formally enter US commerce. "With all the tariff conversations happening with various countries, you would not pay any money on tariffs, taxes or duties as long as you place the product within a foreign trade zone and export it outside of the United States," Martin said. Moreover, there’s no time limit on how long goods can remain in an FTZ, unlike bonded warehouses, where inventory must be exported within five years. "That’s the big difference – they’re both very good, but with foreign trade zones, you’re allowed to keep that indefinitely," he explained. Florida boasts 20 FTZs, with Miami-Dade County alone accounting for 150 operator sites, underscoring the scale of this logistics infrastructure. According to Martin, Port Miami has invested heavily over the past decade to support this framework, including dredging deeper channels and adding infrastructure like ship-to-shore gantry cranes and a port tunnel offering seamless truck access to interstate highways. Nearshoring and distribution dynamics Beyond tariffs, Port Miami officials stressed the value of proximity and nearshoring opportunities for Caribbean exporters. Nearshoring – relocating production or distribution closer to end markets – has gained momentum as US importers seek to reduce dependence on Asian suppliers amid logistical bottlenecks and geopolitical tensions. "During the pandemic, there was too much reliance on China and now we are looking for our partners to be that nearshore for us," said Rigaud. "Transit time is really important – while a product from China may take 14 to 28 days, it takes four to five business days from Trinidad." Miami’s strategic location gives it a consumer reach of 400 million people within a four-day shipping radius, including 44 million in the Caribbean alone. "We have one of the highest concentrations of freight forwarders, custom brokers and warehouses," Rigaud said, noting that Port Miami remains the gateway to Latin America and the Caribbean, and increasingly, a launch point for Europe and Asia-bound cargo as well. Florida itself is a market powerhouse, with a $1.7 trillion economy – making it the world’s 15th largest if it were a sovereign nation – and home to 23 million people, of which seven million live in South Florida’s Miami-Dade, Broward and Palm Beach counties. Tariff monitoring and market intelligence Martin advised regional exporters to stay alert to tariff changes, which have been "fluctuating quite a bit" with new executive orders. "We’ve been staying abreast of those orders through the US Trade Representative’s office to keep the importers and exporters informed," he said. He encouraged businesses to subscribe to updates from agencies such as the US Trade Representative, the Department of Commerce, CBP and the International Trade Commission. No clear tariff advantage yet – but opportunities remain When asked whether any Caribbean products had gained a competitive edge due to global tariff shifts, Martin was candid: "I haven’t seen any as of yet." Steel and aluminium remain the commodities most commonly impacted, due to their high volumes, but the list is fluid. However, Martin stressed that while the Caribbean generally imports more than it exports to the US, growth areas exist, especially perishables like fruits, vegetables, refrigerated beverages and flowers. "Perishables in general are huge for us from Latin America and the Caribbean," he said. He urged exporters to be proactive and make their voices heard in Washington. "Write those letters to different legislators and share your story on how this impacts you – whether it’s positive or negative – so they actually know," Martin advised. He said Port Miami and Trade Trek USA aim to be practical partners for Caribbean businesses navigating US market complexities. The post Tariff talks: Unlocking growth opportunities appeared first on Trinidad and Tobago Newsday.