The Cabinet is exploring direct sourcing opportunities from alternative markets as a strategic response to potential tariff increases by the United States, which could significantly impact the cost of imported goods.
Chief of Staff in the Prime Minister’s Office Lionel Hurst revealed during last week’s post-Cabinet press briefing that the government is considering bypassing Miami as a transhipment hub by establishing direct trade relationships with original product markets, particularly in Mexico and Central America.
“We buy many of the items which we consume right out of Miami, Florida, but those items may not be produced in Miami, Florida. You get Mexican furniture, for example, or furniture from Central America, but they’re imported into the United States and transhipped to places like Antigua,” Hurst explained.
The shift comes as the United States flirts with implementing substantial tariff hikes on Mexican, European and Canadian goods that would inevitably be passed on to Caribbean purchasers who currently rely on American transhipment channels for various imports.
“What we’re hoping is that if the Americans are going to impose significant tariffs so [rather than] when we purchase the goods out of the United States, we are also paying that increased tariff, we look instead directly to the market,” Hurst stated.
He acknowledged significant challenges in establishing direct market connections, primarily due to Antigua and Barbuda’s relatively small import volumes compared to larger Caribbean nations.
“Part of the problem, as you all recognize, is that the amounts which we tend to purchase are small, and so the exporters would prefer to send huge quantities to a place like Miami and have those quantities transhipped to smaller market destinations.”
The chief of staff also noted that Antigua and Barbuda’s purchasing power in line with our population of approximately 100,000 pales in comparison to neighbouring countries like the Dominican Republic, which boasts over 11 million residents and consequently commands more attention from international suppliers.
Despite these obstacles, Hurst added, the Cabinet remains committed to exploring and developing alternative supply chains to mitigate the potential economic impact of US policy changes on Antigua and Barbuda’s import costs and overall trade relationships.
The government has not yet specified which particular markets beyond Mexico might be targeted for direct trading partnerships or what specific product categories would be prioritized.
