U.S President Donald Trump announced on Friday a Global increase in tariffs. This increase means Caribbean nations like St Vincent would move from the current 10% to 15%.
In a post on Truth Social on Saturday announcing the further increase, Trump wrote: “I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level.”
Back in April, 2025, Trump announced a sweeping 10% universal tariff on all imports from St Vincent and the Grenadines along with 21 other Caribbean nations. This declaration was part of a broader strategy to impose tariffs on nearly 60 countries worldwide, with rates fluctuating from 10% to as high as 49%.
United States Imports from St Vincent and the Grenadines was US$8.4 Million during 2024, according to the United Nations COMTRADE database on international trade.
Infuriated by the high court’s ruling on Friday that he had exceeded his authority and should have got congressional approval for the tariffs he introduced last year under the International Emergency Economic Powers Act (IEEPA), the US president railed against the justices who struck down his use of tariffs – calling them a “disgrace to the nation”
The law according to section 122 of the Trade Act of 1974 – which has never been used – allows the president to impose a levy of up to 15% for 150 days, although it could face legal challenges. After that, the administration has to seek congressional approval. During that 150-day period, his administration will work on issuing new and “legally permissible” tariffs, Trump said.
The imposition of a 15% tariff on imports from St Vincent is expected to strain U.S.- St Vincent relations. SVG may experience economic downturns as their goods become more expensive for American consumers.
Many Caribbean economies are vulnerable to external shocks. The added tariff burden could lead to reduced export revenues, job losses, and increased poverty rates, thereby destabilizing these nations’ economies.
While Trump’s announcement claimed that the new tariffs would take effect “immediately”, it was unclear whether any official documents had been signed confirming the timing. A White House fact sheet issued on Friday regarding the original 10% tariffs said the levies would go into effect at 12.01am ET on Tuesday, 24 February.
The new 15% tax rate also raises fresh questions for countries such as the UK, which had previously agreed to a 10% tariff with the US.