As of July 2025, the United States is set to implement reciprocal tariffs on nearly 60 countries, including Jamaica and other CARICOM (Caribbean Community) nations, effective August 1, 2025.

Here's a breakdown of the latest updates concerning Jamaica:

Tariff Status & Deals/Agreements:

• 10% Baseline Tariff: Jamaica, along with most other CARICOM nations, is being threatened with a 10% baseline tariff on most imported goods to the U.S.

• Negotiations Ongoing: While the initial April 5, 2025, implementation date for a 10% baseline tariff was announced, a 90-day pause was granted to allow for negotiations. This pause was further extended from July 9 to August 1, 2025, to give countries more time to strike deals.

• CARICOM's Position: Jamaican Prime Minister Andrew Holness, who is also the CARICOM Chair, has emphasized that CARICOM is engaged in "very strong negotiations" with the U.S. Trade Representative to defend the long-standing preferential trade arrangements under the Caribbean Basin Initiative (CBI). The CBI historically grants non-reciprocal, duty-free access to the U.S. market for a wide range of eligible exports from the region. Nearly 90% of Jamaican exports to the U.S. currently enter under these preferential terms.

• Diversification Urged: Amidst the looming tariffs, Prime Minister Holness has urged CARICOM to seriously consider and implement trade diversification, especially within the Caribbean region, to reduce reliance on the U.S. market. There are ongoing efforts within CARICOM to address non-tariff barriers and standardize procedures to facilitate greater intra-regional trade.

• No Firm Agreement Yet: As of early July 2025, while talks are ongoing, Jamaica and CARICOM have not yet secured a specific deal to exempt them from these new tariffs or significantly alter their impact. President Trump has stated that the August 1 deadline is "firm," though he also indicated that offers from countries could still be considered.

• Modernizing Trade Systems: Jamaica continues to modernize its trade systems under the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), with reforms aimed at strengthening national competitiveness, transparency, and economic resilience. This includes initiatives like the Jamaica Trade Information Portal (JTIP) and the Jamaica Single Window for Trade (JSWIFT).

Affected Companies and Industries:

• Broad Impact on Exporters: The 10% baseline tariff will make Jamaican goods more expensive and less price-competitive in the American market, potentially leading to lower sales and revenue for businesses that export to the U.S.

• Vulnerable Sectors: A study by the Caribbean Private Sector Organization (CPSO), the World Bank, and regional governments indicates that the Caribbean bloc could suffer nearly $550 million in revenue losses from these tariffs. Key industries most exposed to the new tariff regime include:
  Agri- and Aquaculture exports: This sector is considered particularly vulnerable, despite recent growth in exports under the CBI.
  Seafood
  Clothing
  Base metals (though Jamaican officials previously noted that US tariffs on aluminum and steel have had little or no effect on Jamaican businesses due to proactive efforts and U.S. government responses regarding sanctions against Russian interests related to WINDALCO).
  Sugar

• Transshipment Concerns: There are also concerns about penalties for goods deemed to be "transshipped to evade higher tariffs," which could affect supply chains not directly originating in affected countries but passing through them.

• Specific Companies: While the exact impact on individual companies will depend on their export volume and specific products, any Jamaican company exporting the aforementioned goods to the U.S. will likely be affected by these new tariffs unless a specific exemption or favorable deal is reached before August 1.

In essence, Jamaica and the wider CARICOM region are actively engaging in negotiations to mitigate the impact of the upcoming U.S. tariffs, while also exploring strategies for greater regional trade diversification to build more resilient supply chains.