- NEWSDAY.CO.TT - A la Une - Hier 08:00

A time to prosper, not panic

THE EDITOR: “We are exploring all options.” With those words, Prime Minister Persad-Bissessar set the tone for TT’s response to Washington’s new tariffs. From August 7, a 15 per cent duty has been placed on some key exports. Not everything is affected – goods already shipped, items under US tariffs on steel, aluminium and copper, and a few products like medicines and semiconductors are exempt. These carve-outs do not cover our main exports, but they indicate there is still room for negotiation. For TT, this is not a distant policy ripple. Nearly 40 per cent of our exports – around US$2.22 billion in 2024 – go directly to the US, with total bilateral trade reaching about US$5.2 billion. Tariffs on ammonia, methanol, fertilisers and steel strike at the heart of our economy. US importers may hesitate, rivals like Russia, Mexico, and Canada could gain ground, and local producers – already facing high gas costs and underperforming plants – will feel the squeeze. This shows just how exposed our economy is to shifts in US trade policy. The consequences are real. The Manufacturers’ Association already flagged risks to export earnings, jobs and foreign exchange stability. Political voices warn of rising inflation and pressure on the TT dollar. Every family understands what that means: higher supermarket prices, tighter budgets and uncertainty about tomorrow. Nevertheless, this cannot be treated as the end of the road. Yes, the pain is real, but so is the opportunity. As Trade Minister Satyakama Maharaj stated, controversially but not incorrectly, this could be a “blessing.” His point is simple: overdependence on the US leaves the country exposed. These tariffs are a wake-up call that if one door starts to close, others must be ready to open. India, Africa, and South America are not abstract possibilities, they are markets with real demand. The African Import-Export Bank doubling its Caribbean allocation from US$1.5 billion to US$3 billion signals that financing is available if the country is bold enough to seize it. Diaspora networks in India and Africa can also help establish new footholds. Within the region, Caricom remains underutilised: there is considerable potential if trade with closest neighbours is expanded. Some describe the tariffs as economic bullying. Others view them as part of a global shake-up, after all, countries everywhere face similar or even higher rates. Regardless of the label, the response must be the same: imagination, resilience and a united front. Caricom must push Washington collectively, not piecemeal. If Guyana and TT face 15 per cent tariffs while most other Caribbean countries remain at 10 per cent, that imbalance requires correction. TT has faced difficult periods before – oil price crashes, recessions, currency shocks – yet emerged resilient. The country still possesses world-class energy expertise, strong industrial capacity and a skilled workforce. What is now required is discipline: businesses must innovate, government must maintain transparency, and citizens must prepare for adjustments while keeping focus on the broader goal. This is not about pretending tariffs will not cause disruption – they will. Jobs may be lost, margins will shrink, and forex reserves will be tested. Yet if this moment is approached seriously, it can become the impetus for the diversification long discussed but not fully achieved. The US will remain a vital partner, but it cannot be the only one. Tariffs are indeed painful. However, this situation also offers an opportunity to strengthen the economy, broaden markets, and demonstrate resilience. The choice is clear: panic and stumble, or prosper and move forward. If the country rises to the occasion, years from now this moment may be remembered not as the beginning of decline, but as the point when TT chose to prosper, not panic. DR HRIDAY SARMA The post A time to prosper, not panic appeared first on Trinidad and Tobago Newsday.