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Economist Keenan Falconer
Economist Keenan Falconer believes Jamaica could be indirectly affected by the trade war between the United States and Canada, arising from "heightened geopolitical tensions."
US President Donald Trump signed an Executive Order putting a 25% tariff - or tax on imports - on all goods coming from Canada and Mexico, to get both countries to crack down on illegal immigration and drug trafficking.
Goods coming from China will also be hit with a 10% tariff "above any additional tariffs" until it cuts fentanyl smuggling.
Canada and Mexico have moved to retaliate with Canadian Prime Minister Justin Trudeau announcing a 25 percent tariff against the US.
Mr Falconer told Radio Jamaica News that the tariffs could result in general consumer price increases across the board, which could reduce production, "tariffs don't incentivise countries to maximise on production."
"Jamaica would get caught in all of that, as a small, highly import-dependent open economy, where we don't control prices; we're not price makers; we necessarily have to be price-takers," he noted.
He conceded as well that there is little that Jamaica can do to mitigate the effects that tariffs could have on the country, particularly the prices of "foods and other commodities."
"If you have a world-wide trade war; a fully-blown all-out trade war, that will necessarily have some sort of impact on Jamaica that we have very little ability to influence or mitigate," he concluded.
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