EDITORIAL

President Donald Trump’s announcement of a new universal tariff regime this week has stirred capitals around the world—and Belize is no exception. The Ministry of Foreign Affairs and Foreign Trade responded with a formal statement, signaling that officials are urgently analyzing the implications and will engage both U.S. and CARICOM counterparts to safeguard Belize’s economic interests. This is a welcome response, but it underscores the importance of proactive engagement before global developments force reactive measures.

The writing had been on the wall for weeks. In the lead-up to the March 12th General Election, there were clear indications that the global trade environment was shifting. President Trump had been openly reiterating his stance on “reciprocal tariffs,” hinting that the longstanding trade preferences enjoyed by developing countries—such as Belize’s duty-free access under the Caribbean Basin Initiative (CBI)—might be at risk.

Yet, in Belize’s public discourse, there was little attention paid to these signals. The political space was largely consumed by domestic campaigning, and the Opposition, mired in internal division, failed to elevate external economic risks to the level of national conversation. Even outside of the campaign, broader engagement on international developments—particularly ones as impactful as this—remained muted.

Last week, economist Dr. Philip Castillo cautioned that if the U.S. were to impose tariffs regardless of treaty obligations, Belize’s exporters would face higher costs when accessing their largest and most lucrative market. Trump has not explicitly dismantled the CBI, but by introducing a blanket 10% tariff on all imports, he has effectively eroded its value for countries like Belize.

The economic implications may not be immediate or dramatic, but they are real. Exporters—especially small and medium enterprises that depend on preferential access—may face tighter margins and reduced competitiveness. And if trade tensions escalate globally, the cost of imported goods could rise, contributing to inflationary pressures already visible in many economies.

Importantly, this pattern of reactive policymaking appears to extend beyond Belize. A survey of regional responses, as reported by the likes of the Jamaica Gleaner, suggests that Caribbean nations are now individually assessing the impact of the U.S. tariffs, with several preparing for bilateral discussions with Washington. Guyana, facing a 38% tariff on its exports, is already in dialogue with the U.S., while Trinidad and Tobago and Barbados have also indicated intentions to pursue direct negotiations. Antigua and Barbuda and others are expressing concern.

What remains conspicuously absent is a coordinated CARICOM response. No public regional position has yet emerged, despite the fact that most member states face the same 10% baseline tariff. Instead, the approach has so far been fragmented, with each country maneuvering individually. While national diplomacy is essential, the absence of a collective regional strategy weakens CARICOM’s negotiating position and risks overlooking shared vulnerabilities that would be better addressed through a unified voice.

The Ministry’s statement signals that there is awareness at the highest level of the potential risks. The Belize Chamber of Commerce and Industry has also weighed in, noting the vulnerability of SMEs and the need for contingency planning. These are positive steps, but they also raise the question: why weren’t we talking about sooner?

As a small, open economy, Belize is deeply exposed to external shocks. Most CARICOM countries are in the same boat. This reality demands that we become more forward-looking in our governance, policymaking, and public discourse and regional response. It is not enough to respond to international events once they reach our doorstep; we must develop the institutional capacity and public habit of scanning the horizon and preparing early.

This moment is an opportunity to reassess not just our trade diplomacy, but also our readiness to adapt to changes in the global order. Being proactive is not simply a strategic advantage—it is fast becoming a national and regional necessity.