economic crisis

Looming Economic Crisis For The Bahamas

Catastrophic Economic Crisis Looms as Trump Administration’s Port Fees and U.S.-Canada Trade War Threaten to Devastate the Bahamas.

The Bahamas and the wider Caribbean are on the brink of an unprecedented economic collapse, as the Trump administration’s proposed $1 million port fees on Chinese-built vessels and the escalating U.S.-Canada trade war threaten to cripple regional trade, spike inflation by 25 percent, and render basic goods unaffordable for consumers. With the Bahamas importing 90 percent of its goods from the U.S. and its dollar pegged to the U.S. economy, the ripple effects of these policies could be catastrophic, plunging the nation into a dire economic crisis.

Inflation, Business Closures, and Economic Ruin

Rupert Roberts, President of Super Value, the Bahamas’ largest retailer and Tropical Shipping’s biggest customer, warned that the proposed port fees alone would be devastating. “This would increase inflation by around 25 percent,” Roberts told Eyewitness News. “People can’t manage now, so they’ll never be able to handle a 25 percent increase. This can’t happen; it would put us out of business. It’s like the end of the world.”

Roberts emphasized that the fees would force businesses to absorb millions of dollars in additional freight costs weekly, making it impossible to sell goods at affordable prices. “The freight will cost more than the goods themselves,” he said. “Consumers won’t be able to afford them, and businesses will collapse.”

U.S.-Canada Trade War Exacerbates the Crisis

Compounding the threat is the escalating trade war between the U.S. and Canada, which threatens to disrupt the supply chains that the Bahamas and other Caribbean nations rely on. As the Bahamas imports 90 percent of its goods from the U.S., any disruption in U.S. trade flows—whether due to tariffs, retaliatory measures, or supply chain bottlenecks—will have immediate and severe consequences. With the Bahamian dollar pegged to the U.S. dollar, the nation’s economy is uniquely vulnerable to shocks in the U.S. market.

“The U.S.-Canada trade war is a ticking time bomb for the Bahamas,” said one economic analyst. “When the U.S. sneezes, the Bahamas catches a cold. But this time, it’s not a cold—it’s a full-blown economic crisis.”

Tropical Shipping Sounds the Alarm

Tim Martin, President and CEO of Tropical Shipping, confirmed he will testify before Congress on Monday, March 24th, to highlight the devastating ripple effects of the proposed port fees and the broader trade disruptions. “I’m going to be testifying in Congress on Monday the 24th,” Martin said. “I want to make sure I have the opportunity to really drive home how this will negatively impact not just the Bahamas, but the entire Caribbean. This affects everyone, and the cost of goods will increase.”

Martin warned that the fees could cripple Tropical Shipping’s operations, which rely on 19 vessels, many of which make multiple port calls in the U.S. each week. “This could sink the ships and put them out of business,” Roberts added, underscoring the existential threat to the region’s shipping industry.

A Multimillion-Dollar Threat to the Caribbean

The proposed fees, part of a broader U.S. trade action targeting Chinese-built vessels, would impose a $1 million charge per port call on any such ship arriving at U.S. ports. This policy, spearheaded by the U.S. Trade Representative (USTR), is intended to revive the American shipbuilding industry but threatens to devastate Caribbean economies that rely heavily on affordable shipping for imports and exports.

Tropical Shipping alerted its customers to the impending crisis last week, warning that the fees would have far-reaching consequences. “We’ve been in touch with Tropical, and they’ve made it clear this could destroy their business,” Roberts said. “Even the Prime Minister should get involved and do some begging and pleading to stop this. It can’t happen.”

U.S. Shipbuilding Policy and Trade Wars Spark Global Backlash

The Trump administration’s push to “resurrect” the American shipbuilding industry, including the creation of a new White House office dedicated to shipbuilding, has drawn sharp criticism from international trade partners. The policy, which includes steep levies on Chinese-made ships, stems from a Biden-era investigation into China’s dominance in global shipbuilding, where it produces 75-80 percent of the world’s fleet.

Meanwhile, the U.S.-Canada trade war threatens to disrupt North American supply chains, with trickle-down effects that could paralyze the Bahamas’ economy. “The Bahamas is caught in the crossfire of these U.S. policies,” said one trade expert. “The port fees and the trade war are a double whammy that could decimate the region.”

A Perfect Storm of Economic Devastation

As Tropical Shipping’s Tim Martin prepares to testify before Congress, the Bahamas and the Caribbean face a perfect storm of economic challenges. The proposed port fees, combined with the U.S.-Canada trade war, threaten to drive inflation to unsustainable levels, force businesses to close, and leave consumers unable to afford basic goods.

“This isn’t just about shipping; it’s about survival,” Roberts said. “If these policies go through, it will be a death blow to businesses, consumers, and entire economies in the region. The Bahamas cannot afford this.”

With the clock ticking, the Caribbean holds its breath, hoping to avert a crisis that could reshape the region’s economic landscape for generations.
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