VI News Staff 1 year ago

Caribbean must brace for fallout from US tariffs, warns ECCB governor

The Caribbean may not feel the full economic shock of new US tariffs until later this year and into 2026, but Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine is urging the region to prepare now—or risk serious consequences.

Speaking to journalists last Wednesday in Washington, D.C., following meetings with the International Monetary Fund’s (IMF) Western Hemisphere Department, Antoine said that while the immediate impact will be muted, Caribbean nations must rethink their trade logistics and food security strategies to cushion any inflationary blow.

“The big issue is understanding what that shock will mean and its implications, obviously, for tourism—not in the near term,” Antoine explained. The meetings were part of the IMF and World Bank Spring Meetings, which conclude Friday.

The warning comes as global economic uncertainty rises. According to the IMF’s latest World Economic Outlook, economic growth in Latin America and the Caribbean is projected to slow from 2.4 percent in 2024 to just 2 percent in 2025, before rebounding modestly. That outlook was downgraded compared to earlier forecasts.

“So, what we know for a fact is that growth has slowed,” Antoine said. “The magnitude of that reduction is still up for discussion, and to be honest with you, it will not be resolved until the question of the tariffs, for example, is settled.”



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