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Cayman Islands

US Revised Tariffs (%)

10

Ease of doing business

theboardiQ Tariffs Dashboard:

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Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
10
10
20.4
1
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
1.29
0.05
1.24

Implications

As of January 2026, the Cayman Islands faces a unique trade landscape. While the territory is not a primary target of US "America First" tariffs, its status as a major logistics hub and its extreme reliance on US-routed supply chains mean it is heavily impacted by transshipment costs and secondary inflationary pressures.


The following table summarizes the status and impact of US tariffs on the Cayman Islands for 2026:


US Tariffs Update: Cayman Islands (2026)

Category

Current Status / Update

Trade & Economic Impact

Trade Deals

No Direct Bilateral Deal. Cayman is not a primary target of US reciprocal tariffs but lacks a formal free-trade agreement.

Heavy reliance on CARICOM and Lobbying efforts to secure exemptions (e.g., the 2025 exemption from Chinese-built ship port charges).

Direct Trade Impact

Transshipment Fees. US tariffs apply to goods entering US commerce before reaching Cayman.

80%+ of Cayman imports arrive via the US. Goods from China/Europe routed through Miami now incur 10%–25% higher costs due to US "entry" duties.

GDP Impact

Indirect Contraction. Rising costs of living and construction are slowing domestic growth.

Cost-push inflation: Building material costs (steel/aluminum) have risen ~25%, delaying major infrastructure and residential projects.

Company Impact

Supply Chain Pivot. Local firms are forced to bypass the US to remain competitive.

Companies like Office Furniture Ltd are successfully dodging tariffs by shipping directly from China via Jamaica/Panama instead of Miami.

Financial Services

Regulatory Pressure. Possible US "innovation exemptions" for derivatives.

While goods are taxed, the financial sector (Hedge Funds) remains the backbone of GDP, facing more risk from US tax policy than hardware tariffs.

Key Sector Analysis


  • Construction: This sector is most vulnerable. With the US maintaining 25% tariffs on steel and aluminum, the cost of "railing and structural components" in Cayman has surged by an estimated 50% when sourced through US distributors.

  • Retail & Automotive: Dealerships (like MGJ Motorsport) report that even European parts incur "tariff-related adjustments" when transshipped through the US, leading to higher repair costs for residents.

  • Logistics Shift: There is a growing trend of "bypassing Miami." 2026 has seen an increase in freight volumes through Panama and the Dominican Republic as Caymanian importers seek to avoid the US customs territory entirely.


What to Watch in Early 2026


The US Supreme Court ruling on IEEPA (expected Q1 2026) is the "wildcard." If the Court rules that the US President exceeded authority in imposing sweeping 2025 tariffs, Caymanian businesses may be eligible for refunds on duties paid for goods transshipped through the US over the past year.

US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

Trade.Gov Fact Sheet

Tariff Rate for US

World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.

US Imports Guide 

United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.

Investing in USA

theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters

Sources : ForbesUSDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia International Trade Administration

theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

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