Economic Affairs Minister: “We’re Adopting a Wait-And See Attitude”

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NASSAU, BAHAMAS – Another round of U.S. tariffs, this time with The Bahamas caught in the middle of an escalating trade war.

The big questions now: What are these new tariffs? And how will they impact not just the global economy, but life here at home?

Government seeking to answer those questions.

U.S. President Donald Trump signed a tough new reciprocal tariff policy Wednesday setting a 10% baseline tariff on all imports.

Some countries face even steeper rates, 34% on China, 20% on the European union, 46% on Vietnam, and 32% on Taiwan.

The Bahamas and other Caribbean nations, which currently export duty-free under the Caribbean basin initiative now fall under the 10% rate.

Economic Affairs Minister Michael Halkitis addressing the situation Thursday, saying government is keeping a close eye on the situation.

“We realize that dumb things changed very rapidly so something that might be on today could very be off later on today and so are attitude is to adopt a wait and see attitude to see how this develops,” Halkitis said.

Trump’s latest tariffs aren’t the first to raise eyebrows. Just last month he slapped a 25% tariff on imports from Mexico and Canada, doubled duties on Chinese goods to 20% and hiked tariffs on foreign-made cars.

He also proposed a hefty $1 million port fee for any Chinese-built vessel docking in the U.S.

It’s a move that could shake up global trade and for residents these sweeping changes bring growing concerns, which Halkitis says he understands.

“It makes things more expensive you know less money to spend possibly less trade, leading to economic slowdown, and then show the trickle down so, for example, if there’s a severe economic slow down in the us, it would impact our tourism industry.”

But Senator Halkitis says there may be a silver lining.

He said, “I see as well proximity serves us, so you know if there’s a office if there’s recession in the U.S., perhaps the person who would’ve taken a vacation in Europe on in the far east or down there in Bali and those places, maybe they’ll stay close and come to The Bahamas, so will you please remain optimistic.”