Will U.S. Tariff Wars Impact Bahamian Consumers?

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NASSAU, BAHAMAS – Some of the biggest countries in the world are now in a tariff war, and the implications will be wide-reaching. With our closest northern neighbors involved, many are asking how The Bahamas will be impacted.

Amid an ongoing tariff war sparked by U.S. President Donald Trump against Canada and Mexico, it seems The Bahamas will be caught in the middle.

Trump announced new 25% tariffs on imports from Mexico and Canada, which took effect Tuesday, along with a doubling of duties on Chinese goods to 20%, sparking trade wars that could hinder economic growth and lift prices. The hike in prices comes on the heels of years of inflation that many are still grappling with.

Gowon Bowe – Group chief executive officer, Fidelity Bank and Trust
“As long as we are importing out of the United States, anything that increases their prices like tariffs are going to increase our prices here in The Bahamas.”
Canadian Prime Minister Justin Trudeau responded with tariffs of their own on American goods.

Economist Zhivargo Laing says should the trade war continue, price hikes are quite possible.
He believes suppliers should get creative in finding new sources to import from.

Zhivargo Laing – economist
“If you want to keep your customers and you want to keep your customers buying at the levels they are purchasing, you have to keep the cost down. So if your cost keeps rising and rising, your customers are either going to not buy those things at all and that’s a loss of business for you. So it is a part of your business responsibility to try and make your products affordable for your consumers because if they are not, then you lose business.”

But Bowe doesn’t agree.

He believes the notion is easier said than done.

Gowon Bowe – Group chief executive officer, Fidelity Bank and Trust
“If they are looking for the functionality or the utility of it, then there’s a possibility for us to expand our supplier base beyond North America and we could look at South America, Europe, Asia, etc., but that comes with the intended costs of higher shipping costs, higher freight costs, and so you really have to do the mathematics.”

But what can the consumer do to ease the rise in prices?

According to Laing, cutting costs could help.

Zhivargo Laing – economist
“If something you purchase has gotten more expensive and is blowing your budget, then reduce the amount of that you are getting or eliminate it altogether and find a substitute. You will always find things you can do. If gas prices go up too high, then don’t drive around as much.”