Bryan Responds to Federal Tariffs, Highlights VI’s Trade Advantages and Inflation Concerns
Governor Albert Bryan Jr. responded Thursday to President Donald Trump’s newly imposed federal tariffs, acknowledging the potential financial strain the measure could place on Virgin Islands families while emphasizing the territory’s unique opportunity to attract manufacturing investment and stimulate economic growth.
2025-04-04 13:13:43 - VI News Staff
Speaking in light of the 10 percent baseline tariff announced by the White House earlier this week, Governor Bryan warned that while the policy may boost domestic production, it also carries the risk of inflation and rising consumer prices for communities like the U.S. Virgin Islands, which heavily rely on imported goods.
“The administration’s push to strengthen domestic manufacturing is a direction I fundamentally agree with,” Governor Bryan said. “But it must be pursued in ways that do not place additional financial pressure on communities like ours. That’s why I’m especially concerned about how these tariffs could add to the inflationary pressures already confronting Virgin Islands families and businesses.”
Though the new tariffs are federal in scope, Governor Bryan clarified that they are not directly applicable to the territory due to its unique standing outside of the U.S. Customs Zone. The Virgin Islands maintains its own customs system and applies a six percent duty on most imported goods, rather than being subject to mainland U.S. tariffs.
In addition to this distinction, Governor Bryan noted that goods manufactured in the Virgin Islands from imported raw materials can be shipped to the U.S. mainland without incurring tariffs or taxes. “This means products finished in the Virgin Islands qualify as Made in the USA, which gives us a distinct and powerful incentive for companies looking to avoid costly tariffs while still accessing the U.S. market,” Bryan explained.
“This is a moment to promote the Virgin Islands as a smart and strategic location for manufacturing and value-added production,” he added. “We have an opportunity to turn global challenges into local growth.