38% tariff on Guyana exports pushes gov’t, PSC to engage with U.S.

Last Updated on Thursday, 3 April 2025, 18:14 by Writer

Less than one week after President Irfaan Ali pledged “different and preferential” treatment to the United States (US), President Donald Trump announced a 38% tariff on all local goods, except oil, exported to the US.

The US signaled that the imposition was in retaliation against the 76% tariff that Guyana imposes on US imports. Guyana’s share of US exports is 0.2%.

There is a baseline tariff of 10% on all US  imports from countries around the world but the Trump administration has hiked that astronomically on Guyana and many other countries.

The Private Sector Commission (PSC) late Wednesday night suggested that Guyana would be severely affected by the protectionist measure. “[The] United States remains Guyana’s largest trading partner, making it imperative for us to carefully assess the implications of this recent tariff,” PSC Chairman, Komal Singh said.

Guyana’s major exports to the US include crude oil, gold, rum, sugar and seafood.

Mr Singh cited the need for Guyana and the US to hammer out a resolution to the brewing trade dispute.

“A comprehensive review is necessary to identify common ground and ensure that bilateral trade continues to thrive as our economy expands,” he said.

The PSC, regarded in some circles as a mirror of government’s positions on most business and non-business issues, acknowledged Finance Minister Dr Ashni Singh’s commitment to address the tariff barrier.

Mr Singh also suggested that if the issue is not resolved, Guyana’s economy would suffer a dent.

“We remain optimistic that, given our strong and longstanding trade relationship with the United States, a mutually beneficial resolution can be reached that supports economic growth and fosters continued collaboration between our two nations,” the PSC Chief said.

For his part, the Finance Minister said the Guyana government was seeking information from the US about the tariff.

“Our Government is closely engaged with our US partners to better understand the issue and have it addressed as appropriate,” he said in a brief comment on the issue.

The imposition of the steep 38% tariff comes just days after President Ali explicitly pledged that Guyana would provide ‘different and preferential treatment” to the US, apparently in exchange for defence and security support to stave off or respond to an invasion by Venezuela in its quest to take control of the Essequibo Region.

The US has also unequivocally recognised Guyana’s existing borders and promised to give Venezuela “a bad day, a bad week” if it invades Guyana or attacks ExxonMobil’s oil drilling and production assets in the Stabroek Block which is part of this country’s exclusive economic zone.