Guyana Hit with 12.5% US Tariff in New Trade Crackdown

  • Guyana is among 60 trading partners hit with a new 12.5% US tariff after the Trump administration imposed fresh duties on countries it says have failed to enforce bans on goods produced with forced labour adequately. The measures took effect as the temporary 10% global tariff expired on Friday, July 24, 2026.
  • The development comes after Guyana cut ties with Cuba under a decades-old medical programme following Washington’s concerns about forced labour. Guyanese exports were nevertheless placed in the higher tariff category under the new action.
  • The duties were imposed under Section 301 of the US Trade Act of 1974, following the US Supreme Court’s decision in February to strike down Trump’s previous “reciprocal” tariffs of 10% to 50%. Section 301 has survived previous court challenges and may provide the administration with a more durable legal basis for maintaining the tariffs.
  • Guyana was among 38 countries assigned the higher 12.5% rate. Trinidad and Tobago, Mexico, Guatemala, Honduras, El Salvador and several other economies received the lower 10% rate. Meanwhile, the European Union and several Asian economies were assigned rates that totalled 10% or 12.5% when combined with existing tariffs.
  • The measures cover countries accounting for approximately 99.4% of US imports, although numerous products are exempt. These include oil and gas, fertiliser, certain food products, aircraft and parts, critical minerals and goods already subject to Section 232 tariffs, such as autos, steel, aluminium and copper.
  • Several trading partners protested the action, describing the forced-labour justification as unfounded or unjustified. However, US officials argued that the country enforces stronger restrictions on forced-labour imports than its trading partners. They also said the tariffs respond to bipartisan calls to eliminate forced labour from global supply chains.
  • The exemption for oil and gas should limit the direct impact on Guyana’s dominant petroleum exports. However, non-oil exports to the United States will face the higher 12.5% duty.

(Source: Kaieteur News)