Prime Minister Gaston Browne has raised concerns about the potential impact of U.S. tariff increases, warning that such measures could drive up the cost of goods, affect trade, and reduce tourism revenue in Antigua and Barbuda and the wider Caribbean.

Browne noted that rising tariffs on imports—particularly those from China, Mexico, Canada, and India—could indirectly impact Caribbean nations, which rely heavily on imports for essential goods.

“If these tariffs increase by about 25%, it automatically drives up prices for us,” he said. “That, in turn, increases inflation, making it more difficult for our people to afford basic necessities.”

The Prime Minister also pointed to the potential impact on tourism, Antigua and Barbuda’s largest economic driver.

“If the U.S. economy contracts due to rising costs and a reduction in consumer spending, it could result in lower disposable incomes for Americans,” Browne explained. “That would mean fewer tourists coming to our shores and spending money in our hotels, restaurants, and businesses.”

Gaston Browne emphasized the Caribbean’s economic reliance on the United States, noting that 80% of Antigua and Barbuda’s trade is tied to the U.S. and that most of the country’s food imports originate there. He warned that higher shipping costs—caused by new policies affecting vessels built in China—could increase container shipping rates by thousands of dollars, further raising the cost of imported goods.

“We are inextricably linked to the U.S. economy, and when America faces economic turbulence, we feel the effects,” he said. “When the U.S. sneezes, we catch a cold.”

Browne called for greater dialogue between CARICOM and the United States to ensure that small island states are not disproportionately affected by trade policies designed to target larger economies.

“While the U.S. prioritizes its own economic growth, it must also recognize that its policies have unintended consequences for its closest neighbors,” he said. “We are not seeking to challenge their trade policies, but we want to ensure that the Caribbean’s concerns are heard and considered.”

As the government monitors the evolving trade landscape, Browne reaffirmed his administration’s commitment to boosting domestic food production and economic diversification to mitigate risks from external economic shocks.