US imposed tariffs could benefit Guyana’s oil exports- World Bank

– as Guyana one of few countries in region exporting an exempted commodity

As an oil exporter, Guyana is expected to benefit from the United States (US) imposed tariffs on imports from other countries due to trade diversion, particular since its oil exports are exempt. This is according to the World Bank.
Trade diversion happens when tariffs result in imports shifting from low-cost countries to higher-cost countries. It was pointed out by the World Bank in its recently released Global Economic Prospects report that with the exception of imports from Canada and Mexico, crude oil from other countries have been exempted from the US tariffs.
“Following a rise in trade barriers with the United States and an associated increase in uncertainty, weaker export demand and private consumption growth are set to act as the main drag on growth in 2025,” the World Bank said.
The World Bank explained that based on baseline projections, the tariffs that were implemented by the President Donald Trump administration in May, are likely to persist for the foreseeable future. And while Guyana will benefit due to its oil exports, they noted that the tariffs are unlikely to benefit any other commodity produced by the region.
“Crude oil is exempt from US tariffs, except for a 10 per cent tariff on imports from Canada and a 25 per cent tariff in imports from Mexico. Canada accounted for 77 per cent of heavy US crude oil imports in 2024. Consequently, oil exporters such as Colombia, Ecuador, and Guyana could benefit on the margin from trade diversion.”
“For most other products, the region is unlikely to see gains from tariff-induced trade diversion toward China or other countries but instead will be weighed down by the dampening effect of uncertainty,” the bank also said.
Back in April 2025, Guyana had been included on a list of countries facing reciprocal tariffs from the US, a measure that once implemented could see the cost of doing business increase, and had resulted in the Government of Guyana reaching out to its partners in the US, seeking answers.
According to a chart the US President read from, Guyana will have a 38 per cent reciprocal tariff rate applied to its exports to the US, in response to the 76 per cent tariff that Guyana was listed as imposing on US products.
However, the US then put a 90-day pause on these tariffs… a pause that is supposed to expire on July 9. And just recently, US Treasury Secretary Scott Bessent had signalled that the tariff pause might be extended for the countries who negotiate in “good faith”.
At the time of the tariffs, the Guyana Government had already been engaging the US to ensure that trade relations remain favourable not just between the two countries but the wider Caribbean region. As far back as February, this position had been articulated by Vice President (VP) Dr Bharrat Jagdeo, amid plans by the US Government to impose tariffs on imports from several countries including Canada, Mexico and China.
While the US Government had gone ahead with its implementation of a 10 per cent tariff on imports from China, there has been a 30-day delay on the 25 per cent tariff to be imposed on imports from Canada and Mexico. This latter move had brought some level of relief but this was short-lived after President Trump threatened to hit more countries with similar tariffs.
Prior to the reciprocal tariffs being imposed, President Trump had signalled their impending arrival with the aim to reshape the US’s global trade relationships. The President, a BBC article had stated, had suggested that it would be a broad effort that may also help solve US budget problems.