In a move that averted what many in the region viewed as a significant threat to maritime trade, the United States has exempted the Caribbean from a set of proposed tariffs targeting Chinese-built ships.

The decision, announced Thursday, spares regional shipping lines and exporters from multi-million-dollar fines that were initially proposed under the Section 301 case launched in 2023. The U.S. had been considering imposing up to $1.5 million in fines for every Chinese-built vessel entering American ports and penalties of $500,000 to $1 million on ships built or operated outside the U.S.

“There are a number of items that they have listed, but the main part of it that’s of importance to us is that the Caribbean region and the US territories within the Caribbean region, have been exempt from this fee,’ announced CEO of the Antigua & Barbuda Port Authority Darwin Telemaque.

For a region where trade is predominantly seaborne and heavily reliant on imported goods, the implications were serious. Several shipping lines operating in the Caribbean—such as Tropical Shipping, Seaboard Marine, CMA CGM, and King Ocean—operate fleets in which more than half of the vessels are built in China. These ships, particularly those carrying between 1,000 and 1,500 twenty-foot equivalent units (TEUs), would have struggled to absorb the financial impact of the tariffs due to their limited capacity.

“That [the proposed fees] led to a tsunami of outrage and concern by industry professionals, agencies, many US shipyards and even exporters, particularly in the Caribbean, the regional lines that serve us, were going to be significantly impacted,” Telemaque said.

Targeted area of coverage that exempts the Caribbean from proposed tariffs on Chinese built ships

Recognizing the threat to regional economies and trade the Caribbean private sector mounted a coordinated lobbying effort led by the Caribbean Private Sector Organization (CPSO) and its chairman, Dr. Patrick Antoine. According to Telemaque, the effort received strong political backing from CARICOM leadership.

“There was tremendous support from the leadership at CARICOM to actually move forward with that.  Prime Minister Mutley  was the main leader in that,” he shared. He said Antigua and Barbuda’s Prime Minister Gaston Browne also played a key role in initiating broader CARICOM discussions.

Their case was bolstered by support from several regional stakeholders, including the Port Management Association of the Caribbean (PMAC), the Caribbean Shipping Association, and major exporters like Massy and Grace Kennedy.

The advocacy culminated in a formal appeal presented in Washington, D.C., resulting in yesterday’s exemption of both the Caribbean region and U.S. territories in the Caribbean from the punitive tariffs.

While the USTR has yet to finalise the exact structure and value of the tariffs—which are set to take effect later this year—officials confirmed they would not be applied on a per-unit basis. A final determination on the fee structure is expected in May.

Dr. Antoine and the CPSO will continue to represent the region in future discussions with U.S. trade authorities to ensure Caribbean interests are safeguarded.