– VP Jagdeo says country optimistic about 90-day reprieve and ongoing discussions
Guyana is hopeful that the United States will agree to remove a recently imposed reciprocal tariff, Vice President Bharrat Jagdeo announced during a press briefing, emphasising the government’s commitment to protecting local exporters and maintaining the country’s competitiveness in global trade.
The tariff, calculated based on Guyana’s growing trade surplus with the U.S., particularly due to oil exports, had raised concerns about its potential impact on Guyanese exports. However, Dr. Jagdeo reminded that Guyana has secured a 90-day reprieve on the 38 percent reciprocal tariff, offering critical breathing room for negotiations.
“We’re very pleased that President Trump has announced the U.S. is prepared to engage with countries on this matter,” the Vice President stated. “We have already signalled to the U.S. government our interest in holding discussions, and we are optimistic about emerging from these talks in a better position.”
Jagdeo further explained the distinction between two separate tariffs currently in play. A 10 percent general tariff is now in force on all goods entering the United States, affecting all trading partners equally. “That does not put our exporters at a disadvantage,” he noted. “If the Dominican Republic exports bananas and we export bananas, both pay 10 percent. So, it cancels out the competitive gap.”
However, he warned that had Guyana been subject to the 38 percent reciprocal tariff—while others paid only 10 percent —it would have created a severe imbalance. “This is why the 90-day reprieve is so important,” he said, stressing that the government is working to ensure a favourable outcome.
While expressing optimism, Jagdeo acknowledged that the outcome of the negotiations remains uncertain. “Our surplus with the U.S. is largely driven by oil exports from American-based companies. That’s why we believe we have a strong case and are hopeful about the talks.”
In parallel, the government is engaging with local exporters to explore possible measures to cushion any adverse effects from the tariff, should it remain in place. “We’ve discussed using the tax system to support exporters, and we’ll continue those consultations. The government is taking this matter seriously and remains committed to safeguarding the interests of the export sector,” Jagdeo added.
On Monday, the Government of Guyana engaged local private sector exporters, with Vice President Dr. Bharrat Jagdeo leading high-level talks aimed at preserving the country’s export competitiveness in the American market.
The meeting included representation from the Private Sector Commission (PSC), the Georgetown Chamber of Commerce and Industry (GCCI), and the Guyana Manufacturing and Services Association (GMSA).
Additionally, Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh and Minister of Agriculture Zulfikar Mustapha were in attendance, underlining the cross-sectoral approach being taken to mitigate potential impacts on trade, agriculture, and manufacturing.
Guyana is one of the hardest-hit Caribbean nations under the new U.S. tariff structure, facing a reciprocal tariff rate of 38 percent—a figure reportedly linked to discrepancies in trade data between the two nations.
The US’ reciprocal tariff carries exemptions on certain products including the top three commodities that Guyana exports to the North American nation.
Based on an Annex to the Executive Order signed by President Trump, instituting various percentages of tariffs for countries around the world, petroleum crude, aluminium ore and gold are exempted.
According to the Vice President, these are the highest exports to the US, with figures from 2024 showing that crude export totalled US$3.1 billion, aluminium US$36.9 million and gold US$16.6 million.
Other major exports to the North American country are fish at US$19 million, molasses, sugar and honey at US$8.7 million, alcoholic beverages at US$6.5 million, measuring/checking instruments at US$5 million, and fish at US$3.1 million.
In 2024, Guyana reported that it exported US$3.3 billion in products to the US while importing US$2.56 billion, leading to a surplus of $799 million. But the US report to UN Comtrade shows that Guyana exported US$5.5 billion in products to the US and imported only US$1.3 billion, leading to a surplus of over US$4 billion.
Based on calculations, this excessive trade surplus, which has only been in recent years, was used to calculate the tariffs.
“Clearly, there is room for us to work with the US partners to clarify this information… We want to point out to the United States of America, because we have good import data, that we are importing much more from the [US] than what is reported by the US to the UN Comtrade system,” Jagdeo said.
The Vice President noted that a revision of these figures could lead to a “significant reduction” in the trade surplus. This could potentially see a reduction on the 38 percent tariff instituted on Guyana’s exports to the US.
