Could U.S. Port Fee Threat Lead To Inflation And Consumer Strain?

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NASSAU, BAHAMAS – Central Bank Governor, John Rolle says The Bahamas along with other countries in the region should keep a close eye on the proposed U.S. port fees on China-built ships.

Earlier this month, U.S. President Donald Trump revealed plan to revive U.S. shipbuilding using massive fees on China-linked ships.

Trump is drafting an executive order that would rely on funding from a U.S. trade representative proposal to levy fines of up to $1.5 million on China-made ships or vessels from fleets that include ships made in China.

With 90% of our goods coming from the United States, Rolle says it could lead to the cost of goods going up, and in other words, you could be paying more than ever before.

Rolle made these comments as he was speaking at Central Bank’s Macroeconometric Caribbean Conference at the Atlantis resort this morning.

This week, The Nassau Guardian reported that Super Value food store owner, Rupert Roberts, warned that the fee could drive inflation up by 25 percent.

Additionally, Tropical Shipping is also warning that prices could inflate if the proposal is carried out.

As for consumers, these developments could not come at a worse time, as Rolle says our region is already dealing with post-COVID recovery and climate change.

However, he believes meetings like the ones held at Atlantis this week is a step in the right direction.