Storms hovering over the Caribbean

Apr 11, 2025 Features / Columnists, Peeping Tom

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Peeping Tom…

Kaieteur News- In recent weeks, the United States—under the assertive tones of the Trump administration—has floated the possibility of punitive measures aimed squarely at vessels built or operated by Chinese entities. And though such pronouncements often roll out from Washington with the usual fanfare, this particular storm is extremely troubling to the Caribbean.

The proposal, in its bluntest expression, would saddle Chinese-made ships calling at American ports with levies that may stretch up to $1.5 million per visit. For vessels operated by Chinese firms—even if flying flags of other nations—an additional $1 million may be tacked on.

That these numbers are astronomical is one thing; that they are conceived in a world where shipping margins are as thin is another. Most troubling, however, is how this tempest—engineered under the dubious banner of “American competitiveness”—adds yet another squall to a region already saddled with a 10% export tariff to the US ( in the case of Guyana, it is 38%)..

The Caribbean relies heavily on maritime trade. Much of our goods arrive in containers stacked high. They do so using ships that transit US ports. This threat of high levies on Chinese-built or operated vessels will cause serious harm to Caribbean economies. For Guyana, the situation is no better since we do considerable trade with China, estimated at some US$1.4 B in 2024.

One might expect, in the face of such disruptions, that governments would rally to consult with stakeholders, convene emergency sessions, or at the very least, pick up the phone and call someone in the shipping business.

Yet in Guyana, there has been a worrying silence. No serious engagement with the private sector. No consultations with exporters, trade unions, or even the local chambers of commerce. The policy void has become a kind of echo chamber—one where the absence of response reverberates louder than any official pronouncement. It is a silence that does not suit the gravity of the moment.

If the United States insists on this maritime levy—if it is not mere sabre-rattling, but the foretelling of an actual order—then the Caribbean must do what it has always done when faced with an unkind storm: trim the sails and find another current.

That current may well lie further south, where the Chinese are developing what could be a lifeline. The Port of Chancay in Peru, financed and largely constructed under Chinese auspices, promises to be a major hub in the trans-Pacific shipping world. With deep-water berths, modern facilities, and a location outside the U.S. naval and commercial sphere, Chancay offers what the Caribbean so sorely needs: an alternative gateway.

It is time for CARICOM to parley with Beijing to work out arrangements to facilitate direct shipments from China to the Caribbean, possibly using Chancay as a staging port. Such a move would not only shorten the physical distance between goods and people, but also soften the financial blow of America’s proposed levies.

Yes, logistics would be challenging. Infrastructure in many of our ports is inadequate. But necessity is the mother of invention. And history shows that when pressed, Caribbean nations can be inventive. What is needed now is not another declaration or press release, but action.

In taking action, the Caribbean must also dismiss the notion that the United States is a friend. Friends do not impose pain on each other. Friendship, like trade, must be grounded in mutual respect, not economic coercion. To levy million-dollar charges on foreign-built vessels that are vital to our survival is to extend a punishment not to China alone, but to the Caribbean.

The Caribbean is looking down the barrel of a gun. The price of shipping—already swollen by pandemic aftershocks, fuel price volatility and container shortages—is poised to climb again. If costs rise too far, if shipments become erratic or delayed, it will be the consumer in the Caribbean who feels it first.

And still, Guyana waits. It awaits its sleeping beauty to awaken. By now, it was expected that someone in the corridors of power might have gathered exporters and industrialists and ask simply, “What now?” For a country sitting on billions in oil revenue, it seems absurd to be blindsided by tariffs and shipping costs—absurd, and yet entirely possible in an era where silence has replaced strategy.

There is no grandeur in being unprepared. Guyana and the Caribbean, a region of fragile economies, must prepare for the gathering storm. If America tightens its ports, then we must open new ones elsewhere. If tariffs are the new weapon of choice, then we must reduce our dependence on America. It is as simple as that.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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