How will tariffs imposed on goods by the USA on Canada and Canada’s retalitary measures impact Barbados and the global community?
It should not go unobserved that Canada and the USA along with Mexico are members of the United States – Mexico – Canada Agreement (USMCA). USMCA , a trade arrangement established to “modernise and update NAFTA’s rules , reflecting changes in the global economy, especially in technology, manufacturing, and agriculture“.
It is early to assess impacts on our small open economy always vulnerable to exogenous shocks BUT it is reasonable to anticipate economic fallout from the trade disagreement between two countries that share a landmass. Canada and the USA are key source markets. If the tariff war triggers a slowdown in US and Canada economies, it will negatively impact consumers wanting to travel for leisure.
What about goods imported by Barbados that passthrough US and Canada ports?
Barbados is not a significant exporter of good but there is rum that we export that could be negatively impacted by a protracted trade disagreement between Canada and the USA.
There are several other ways the conflict between these two large countries could impact the economy of Barbados which is currently ‘booming’ on the back of tourism. Potentially Mexico will get involved.
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