WILLEMSTAD — Curaçao's consumers should prepare for significant price hikes on imported food staples in the coming months, as new U.S. trade policies create ripple effects across Caribbean supply chains. Financial experts warn that everyday grocery items, particularly meat and dairy products, could see price increases ranging from 5% to as much as 13% by the end of 2025.
The root cause lies in recent U.S. import tariffs targeting Canadian and Mexican goods. While designed to protect American industries, these 25% levies are inadvertently impacting Curaçao's food supply. The island imports approximately 80% of its food, with a substantial portion arriving through U.S. distribution channels after originating in Canada or Mexico.
Thomas Domhoff, a financial analyst with expertise in international trade, explains the troubling dynamic. "What many consumers don't realize is that products labeled 'Product of USA' often begin their journey in Canadian farms or Mexican processing plants," he said. "These tariffs add costs at every step of the supply chain, and small island economies like ours end up paying the price."
The numbers paint a concerning picture. Last year, Curaçao imported nearly 7 million worth of beef and meat products through U.S. channels, plus another 7 million in dairy products—much of it originally sourced from Canada and Mexico. Industry projections now suggest beef prices could jump 8-13%, with dairy products increasing 6-10%. Other affected items include poultry, baked goods, and processed foods, though with slightly more modest expected increases of 3-7%.
This economic pressure comes at an already difficult time for Curaçao's consumers. Sea freight costs have risen 22% since 2023 according to UNCTAD data, while local electricity prices have climbed 15% year-over-year. The combined effect threatens to push food inflation to 8%, doubling current rates and further straining household budgets.
In response to the crisis, the Ministry of Economic Development has begun exploring potential mitigation strategies. These include possible temporary VAT reductions on essential food items and accelerated trade negotiations with alternative suppliers in South America. However, officials caution that such measures will take time to implement.
For consumers, experts recommend several strategies to weather the coming price storm. Supporting local producers where possible could help offset some imported food costs, while bulk purchasing of non-perishable items before the third quarter might help families avoid the steepest price increases. The government has also suggested residents monitor potential price freeze petitions through the Consumer Affairs Office.
With $14 million in annual U.S. meat and dairy imports at stake, and a typical 3-6 month lag before tariff impacts fully reach store shelves, Curaçao finds itself caught in a global trade conflict far beyond its shores—a stark reminder of how interconnected modern food systems have become, and how vulnerable small island nations remain to distant policy decisions.
Source: Antilliaans Dagblad