GMSA welcomes US tariff reduction on Guyana’s exports, had hoped for 10 percent

Last Updated on Friday, 1 August 2025, 19:07 by Writer

The Guyana Manufacturers and Services Association (GMSA) on Friday welcomed the United States’ (U.S.) reduction of its reciprocal tariff from 38 percent to 15 percent, although executive members had hoped for it to go down to 10 percent.

“The Guyana Manufacturing and Services Association (GMSA) acknowledges the recent executive orders issued by the United States Government to reduce the scheduled reciprocal tariff rate on Guyanese exports from 38% to 15%,” the association said in a statement, one day after at least two executive members had expressed concern about the 15 percent rate.

The GMSA said it sincerely appreciated the Guyana government’s “active engagement and representation throughout the negotiation process.”

Earlier Thursday, Guyana’s Vice President Bharrat Jagdeo was optimistic that, based on the trend of talks with the U.S. Trade Representative’s Office, the tariff would have remained at 10 percent. Following the announcement, he said the negotiations were still underway with the U.S. to revert it to 10 percent. “It was adjusted down by the U.S. from 38 percent down to 15 percent and we’re happy with that adjustment. However, we are still engaged in a bilateral negotiation that we hope, when concluded, will bring it down further to 10 percent,” he told Demerara Waves Online News.

The Association further acknowledges that discussions were ongoing and expresses its full support for continued diplomatic and trade efforts aimed at securing additional tariff reductions.

Earlier this year, President Trump had hiked the tariff on Guyana’s imports to 38 percent, but after a global outcry the U.S. had suspended such steep increases on 70 countries for 90 days and replaced it with 10 percent for several countries. That excluded Guyana whose reciprocal tariff rate had remained at 38 percent.

GMSA President Ramsey Ali, in a brief comment on Thursday, told Demerara Waves Online News that the hike was bad news for exporters like those in the wood and furniture sector. “That’s going to hurt,” he said, adding that the GMSA executives would be meeting to discuss that decision by U.S. President Donald Trump.

GMSA Executive Member, Howard Bulkan hoped that his association could meet with the government on Friday, August 1, although it is a national holiday here. Mr Bulkan said his company, which has been exporting 62 percent of its wallaba roofing shingles to the U.S., had been “absorbing” the 10% tariff but would now be forced to seek alternative markets in Europe. “This is going to have devastating effects on us. We’ll have to look at the numbers in the coming months but this is very bad news to me and my company,” he said. Prior to the Trump tariffs, the figure was zero on the wallaba roof shingles. He said the local product was not intruding on the U.S. market share of cedar shingles.

Mr Bulkan described the U.S. tariff imposition on Guyana as “unfair” because the tabulation was being made based on oil exports. “I had hoped that our representatives with the trade people in the United States would have pointed this out.”

Apart from his company, he said other GMSA members that export to the U.S. would face a “tough” time. “All of us will have to now look for markets probably in Europe if our buyers in the U.S. can’t take the 15 percent increase. Obviously, we will have to pass it on at some stage,” he said, noting that when freight and duties are added the figure could soar to 25 percent.