By Dr. Philip Castillo.
Belize will seek bilateral talks with U.S. officials and coordinate with CARICOM following President Donald Trump’s sweeping tariff announcement that could threaten duty-free access under the Caribbean Basin Initiative (CBI).
The Ministry of Foreign Affairs and Foreign Trade issued a brief statement confirming that Belizean authorities are urgently analyzing the new U.S. tariff regime, which imposes a baseline 10% tariff on all goods entering the United States and up to 50% on specific countries. Belize, though not explicitly named among the hardest-hit nations, now faces growing uncertainty regarding the future of its preferential trade terms.
The development follows warnings last week by economist Dr. Philip Castillo, who cautioned that Trump’s rhetoric on “reciprocal tariffs” could dismantle the CBI framework. The CBI has been vital for Belize, granting duty-free access to the U.S. market for a wide range of exports, particularly in agriculture and light manufacturing. Castillo noted that any blanket application of tariffs—regardless of existing treaty arrangements—would nullify these benefits and deal a heavy blow to the country’s fragile, import-dependent economy.
Castillo further explained that Trump’s tariff policy disregards World Trade Organization (WTO) principles of special and differential treatment (SDT) for developing countries, which allow nations like Belize to enjoy non-reciprocal trade advantages in recognition of developmental disparities. The new regime, however, replaces this principle with an aggressive standard of parity—imposing equal tariffs on countries regardless of income level or prior trade commitments.
The Ministry’s statement signals a diplomatic turn, emphasizing Belize’s intent to engage the U.S. through formal channels while simultaneously aligning with CARICOM for a collective regional response. The concern is not limited to exports alone; Belize’s heavy reliance on imports—particularly from countries like the U.S., Mexico, and the EU—means rising costs on foreign goods could spur inflation, reduce purchasing power, and weaken domestic production.
Other countries, such as China, India, and South Korea, have already voiced strong objections to the tariff overhaul, warning of disruptions to global supply chains and threatening retaliatory measures. In contrast, Belize’s response, though measured, reflects the urgency of safeguarding economic stability through diplomacy.