Caribbean shipping sector secures key US tariff exemption on China-built vessels

The Caribbean has scored a significant trade victory, with the United States Trade Representative (USTR) exempting the region from proposed high port fees on China-built vessels.

The CARICOM Private Sector Organisation (CPSO), in a release, noted that the exemption, officially announced on 17 April 2025, spares the region from fees exceeding US$1 million per US port call—costs that could have severely disrupted trade, increased inflation, and caused shortages across CARICOM.

The CPSO, in welcoming the USTR decision, credited a unified regional response and strong leadership from CARICOM Heads of Government. Chairman Gervase Warner especially acknowledged the role of Prime Minister Mia Amor Mottley, whose engagement with US Secretary of State Marco Rubio and President Donald Trump was instrumental.

The CPSO stated that its strategic advocacy, led by economist Dr Patrick Antoine, was crucial to the successful outcome. The secretariat organised a record-setting coordination call with over 700 stakeholders and hosted two regional consultations that helped formulate a unified private sector position. Warner praised the openness of the USTR panel to regional submissions and testimony.

On behalf of the regional private sector, the CPSO advocated for:

• Short sea shipping within 2,000 nautical miles (reduced from the CPSO’s proposed 2,750 miles);

• Vessels under 55,000 deadweight tons and fewer than 4,000 TEUs (revised from 4,999 TEUs);

• Specialised cargo vessels, including those carrying chemicals or energy products, up to 80,000 deadweight tonnes.

Key partners in the effort included Tropical Shipping CEO Tim Martin, CPSO-USBC Director Jennifer Nugent-Hill, the Caribbean Hotel and Tourism Association (CHTA), Caribbean Tourism Organisation (CTO), Seaboard Marine, the Atlantic Council, and the Port Management Association of the Caribbean (PMAC).

Congresswoman Stacey Plaskett of the US Virgin Islands was also commended for her timely advocacy in a US Ways and Means Committee hearing. CARICOM ambassadors and officials, including Ambassador Wayne McCook and Dr Wendell Samuel, played vital roles in the coordinated response.

Warner thanked regional media for their support and reaffirmed the CPSO’s commitment to addressing future challenges, including US tariffs on CARICOM trade.