By The Bajan Observer Staff | May 28, 2025
Washington, D.C. — A U.S. federal court has blocked President Donald Trump’s attempt to impose a blanket 10% tariff on all imported goods, striking a major blow to the administration’s aggressive trade strategy and bringing relief to international trade partners — including the Caribbean.
The ruling, issued by the U.S. Court of International Trade, found that the President’s plan exceeded the authority granted under existing trade laws. The court reaffirmed that only Congress has the constitutional power to implement such broad changes to U.S. tariff policy.
The proposed tariffs, which the Trump administration branded as a “universal baseline tariff,” aimed to discourage imports and boost domestic manufacturing. But economists and trade analysts warned that the move could ignite a global trade war, raise consumer prices, and provoke retaliation from key trading partners.
For the Caribbean region — where many economies depend on access to U.S. markets — the ruling comes as a welcome reprieve. While no official government statements have yet been issued, regional analysts note that widespread U.S. tariffs would have significantly impacted exports of products such as rum, sugar, and processed foods, as well as service industries like tourism and offshore finance.
“This ruling gives Caribbean exporters time to breathe,” said a trade policy advisor familiar with CARICOM’s economic planning, speaking on condition of anonymity. “Had the tariffs been approved, many small economies in the region would have faced steep cost increases and possible trade disruption overnight.”
The Trump administration condemned the court’s decision, calling it an “obstruction of the President’s authority to act in America’s national interest.” A White House spokesperson confirmed that the administration plans to appeal.
U.S. business groups, on the other hand, welcomed the ruling. The U.S. Chamber of Commerce and other industry organizations had warned that the tariffs would hurt American consumers and destabilize trade relationships.
For Caribbean leaders, the case underscores the need to strengthen regional trade ties and reduce overdependence on any single partner. A special CARICOM summit is expected in early June, where economic resilience and trade diversification are likely to dominate the agenda.