Prime Minister Gaston Browne has warned that proposed U.S. tariffs on Chinese-operated shipping lines could have devastating effects on Caribbean economies, potentially pushing regional inflation as high as 14%.

Speaking during his Pointe FM radio show, Browne explained that the policy—currently under discussion in Washington—would impose a fee of approximately $1.5 million on all container ships operated by Chinese lines. “We’ve been advised that a container could increase by about $3,000 to $4,000 USD each,” he said. “That could drive prices up by 8 to 10 percent easily, at a time when inflation is already elevated.”

The Prime Minister described the situation as “extremely inflationary,” warning it could threaten regional economic stability. “It will literally destabilize Caribbean economies,” he said, citing analyses that suggest inflation could trend up to 12 to 14 percent if the measure is implemented.

Browne noted that the issue is being addressed at the regional level, with the CARICOM Chair, Barbados Prime Minister Mia Mottley, expected to write to U.S. President requesting a carve-out for the Caribbean under the Caribbean Basin Initiative (CBI).

“One of the objectives of the CBI is to ensure economic and social stability within the region,” Browne said. “The United States should be concerned about its third border and any unintended consequences of policies it implements.”

He indicated that alternative strategies are also being considered at the Cabinet level, including the possibility of increased trade with South American nations such as Brazil.

However, Browne cautioned that discussions on alternatives remain premature. “We’re trying to resolve this issue so we can maintain the status quo,” he said. “The easiest thing is for us to get a carve-out.”