On April 2nd, the United States announced new import tariffs for many countries in the world.
Aruba, Curaçao, and St Maarten were subjected to relatively low tariffs of 10 percent. However, these countries may still suffer significantly from the emerging trade war, argues Joris Nanne in a contribution to Dossierkoninkrijksrelaties.nl.

Aruba, Curaçao, and St Maarten export little to the United States, which suggests that the direct effects of the tariffs may be limited. However, indirect effects are expected to be more significant. Since Americans will have to pay higher taxes on imported goods, it is likely that prices in the US will rise as a result of these tariffs. According to analysts, this will lead to higher inflation in the United States. Because Aruba, Curaçao, and St Maarten import a large share of their goods from the U.S., prices on the islands are also expected to rise.

The trade war may also impact the tourism sector on the islands. Economists around the world predict that the trade war will lead to an economic recession. This will affect the number of tourists visiting Aruba, Curaçao, and Sint Maarten. Given the importance of tourism for the economies of the islands, a decline in tourism will have consequences for the local populations.

Joris’ full essay (in Dutch) can be read on the website Dossierkoninkrijksrelaties.nl.