Guyana vows to stand with U.S.

Mar 28, 2025 News

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…as Trump threatens tariff on Chinese-made vessels

By Renay Sambach

Kaieteur News- While President Irfaan Ali has acknowledged the looming economic impacts stemming from United States President Donald Trump’s proposed tariffs on Chinese-built ships, on Thursday he vowed to stand by the U.S., “a great friend” of Guyana.

At a press conference following talks with U.S. Secretary of State Marco Rubio, held at State House in Georgetown, both officials were asked whether their discussions focused on the impacts the tariffs could have on the Caribbean. Responding first, Secretary Rubio contended that the U.S. aims to reduce dependency on Chinese shipbuilding. He, however, acknowledged the potential economic consequences for Guyana and the region. “The goal the President has in doing so is we need to have an ability to build ships in this world that don’t just come from China. I think it’s just dangerous that one country in the world is building all the ships. I assure you that we don’t want a war. But I mean, they’re not going to build ships for us if we get in trouble, right? So, we need to have alternatives to Chinese and we’re trying to create a market and then demand for alternatives to Chinese ship construction,” Rubio explained.

Secretary Rubio admitted that he could not make any guarantees about exemptions or policy changes, as trade matters do not fall under his portfolio. However, he assured that he would relay the region’s concerns to U.S. trade officials. “So, I can’t make a commitment to those exempt, because that’s not something we have with the partner State. What I can commit to is that I will most certainly raise this issue as a recurring issue in multiple places, that it would have a real detrimental effect on economic development. Maybe in 10 years, it won’t be an issue because there’s been some diversification, maybe in five, but right now, it would be problematic. That message I’ll take back to Washington and to my colleagues that are handling the trade portfolio, and we’ll see how the President decides to proceed. But rest assured, we will take that message back,” Rubio stated.

For his part, President Irfaan Ali took comfort in Rubio’s statement that he will relate Guyana and the region’s concern. He said, “But Secretary Rubio is, as he said, will take this back and to see whether there can be any special initiative for the region, given our specific circumstances.” To this end, Ali made it clear that Guyana has a responsibility to its friends. “The U.S. is a great friend of ours. The U.S. has made it very clear that they are ready to stand by us in our development, in our economic expansion, in our security and in our defence. And I will say very boldly that such friends must have some different and preferential treatment, because a friend who will defend me when I need a friend to defend me, must be a friend that enjoys some special place in our heart and in our country, that will be the case,” he said.

President Ali recently voiced his concerns over the impacts Trump’s tariffs would have on the region.  Ali said that Guyana, Suriname, and Trinidad and Tobago would need to assess the implications for tankers and other vessels transporting oil and gas. “That, of course, can have effects on the cost of goods coming into the region, the cost of transport coming into the region… this is a policy that was alluded to, so there are some discussions that will have to occur so all of these things are key regional issues that we are discussing together,” Ali stated. He said that while the policy is not yet implemented, “we have to have early conversations to mitigate or minimize the impact.”

Backfire

US media have reported that industry executives stated on Monday at a U.S. Trade Representative (USTR) hearing, that Trump’s plan to revitalise the U.S. shipbuilding industry is likely to backfire, as it relies on proposed fees for China-linked vessels that would harm domestic ship operators, ports, exporters, and employment.

The discussion centers on the stacking of fees on Chinese-built ships, which could exceed US$3 million per visit to U.S. ports, Reuters reported. The Trump administration claims these fees will deter China’s increasing commercial and military dominance in open seas and encourage domestic shipbuilding. U.S. steelworkers’ unions, U.S. steel manufacturers, and Democratic lawmakers support this effort, saying it will revitalize the domestic industry.

However, this idea has created a shockwave in the U.S. maritime industry, as it threatens the survival of the same shipping companies and customers that would increase the demand for orders from the U.S. shipyards Trump wants to rebuild. “The effort to strengthen American shipbuilding would not serve the national interest if it inadvertently destroyed American-owned carriers,” said Edward Gonzalez, CEO of Seaboard Marine, the largest U.S. international ocean cargo carrier, based in Florida, on Monday.

Like many U.S. operators, Seaboard relies on Chinese-made ships. According to maritime data provider Alphaliner, its fleet of 24 ships includes 16 Chinese-built vessels. U.S. ship operators said that fees on China-linked ships would push more U.S. cargo to foreign-capitalized ocean transport companies, which have the resources to better handle the change.

According to the USTR, China’s share of the shipbuilding market rose from under 5% in 1999 to over 50% in 2023. Speakers said that U.S. shipyards produce fewer than 10 ships a year, while China produces 1,000. Meanwhile, industry executives noted that shipbuilders in Japan and Korea would struggle to meet demand in the years it would take for U.S. shipyards to build capacity.

Kathy Metcalf, CEO of the Chamber of Shipping of America, said that replacing existing Chinese-built ships is not like flipping a light switch. “Punishing China and the U.S. maritime transport system is not an acceptable outcome,” she said.

U.S. ship operators support key American industries, such as manufacturing, mining, and agriculture, by transporting goods on inland waterways, along the Great Lakes, and up and down the country’s coasts. Agricultural exporters are struggling to book ships after May due to uncertainty in the USTR plan, while coal industry representatives also state that the fees make it difficult to offer their goods to the global market.

“I urge you to ensure that your efforts to increase domestic shipbuilding do not come at the expense of farmers’ access to the market,” said Mike Koehne, a board member of the American Soybean Association, who grows soybeans and corn in Indiana.

Nate Herman, senior vice president of policy for the American Apparel & Footwear Association, which is dependent on imports, said port fees would lead to job losses for American workers, higher costs for American exports and imports, and scarcity and rising prices for American consumers. He cited a new study by various trade groups showing that high costs from port fees would cause U.S. exports to fall by almost 12% and GDP to fall by 0.25%.

“Hardworking American families cannot afford more price increases and product shortages, and American manufacturers and farmers cannot afford to lose more export markets,” Herman said.

Representative Rosa DeLauro and 62 other Democrats in Congress supported the proposed fees and other “swift and decisive” actions in a letter sent to U.S. Trade Representative Jamieson Greer on Monday, saying that China’s dominance in the sector poses “unacceptable costs and risks” in terms of job losses and critical manufacturing capacity. They requested the USTR to provide a facility that would allow firms to avoid fees by routing their cargo through Mexico or Canada.

The USTR, which will hear more comments at a hearing on Wednesday before finalizing the proposal under the Unfair Trade Practices Act, did not immediately respond to requests for comment. In the current proposal, to completely avoid fees, ship operators must be based outside of China, have less than 25% of the ships in their fleet built in China, and not plan to order or take delivery from Chinese shipyards in the next two years.

A draft executive order seen by Reuters earlier this month would further narrow this limit by imposing port fees on all fleets with Chinese-built ships. Ship owners could try to minimize the blow by using larger ships and limiting calls to major U.S. ports, but this could put those ports in a difficult situation and lead to supply chain-related stress. According to ship and port operators, ship operators could also shift cargo bound for the U.S. to ports in Canada and Mexico and rely on trucks and trains to complete the journey, but this measure could also clog border crossings and cause more infrastructure wear and tear.

(Guyana vows to stand with U.S.)

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• China, Irfaan Ali, Marco, Tariff, Trump

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