Individual consumers and businesses in Bermuda should expect rising prices if US president Donald Trump applies high tariffs on goods arriving at American ports from Canada, Mexico and China, the leader of the Bermuda Chamber of Commerce has said.

Mr Trump has paused the tariffs proposed to be levied on Canada and Mexico for 30 days to give the negotiating parties time to strike a deal that would take effect going forward — but there is no guarantee that such an agreement will be reached.

A 10 per cent tariff on goods originating in China appears set to proceed.

Marico Thomas, president of the chamber, said: “At first glance, Bermuda may seem insulated from these disputes.

“We do not produce goods for export, nor do we rely on international trade agreements.

“However, our economy is deeply linked to global supply chains, and any disruption to those chains will have downstream effects for us in Bermuda.”

Mr Thomas said the imposition of tariffs “could have a significant impact on Bermuda, particularly through increased prices for goods manufactured in the US using imported raw materials, as well as finished goods originating from these countries and sold to Bermuda via US suppliers”.

He said: “The tariffs imposed on Canada, Mexico and China could lead to increased costs for goods sourced from these regions.

“Many of our imported products ranging from construction materials and vehicles to food and consumer goods pass through or originate in these affected countries.

“If tariffs result in higher costs for US businesses, those increases will be passed down the supply chain, eventually reaching Bermudian consumers.”

He added: “Rising first costs due to tariffs will not only increase the price of imported goods but will also result in higher duty fees upon importation. This combination will further elevate the overall cost of goods sold in Bermuda.”

Mr Thomas said the island’s hospitality, tourism and international business sectors could also be affected, albeit in different ways.

“Additionally, Bermuda’s hospitality and tourism industries are heavily dependent on imported food and beverage products.

“If tariffs lead to cost increases on items such as seafood, meats or wines sourced through US distributors, restaurants and hotels may have to adjust pricing, potentially impacting both profitability and visitor spending patterns.

“Beyond goods, Bermuda’s international businesses would also be watching these developments closely.

“Trade tensions between the world’s largest economies can lead to market volatility, affecting investment returns and global business confidence.

“While Bermuda’s regulatory and business environment remains attractive, prolonged instability in global markets could impact decision-making for multinational firms with a presence here.”

Given these potential risks, Mr Thomas said, Bermuda should be proactive in mitigating any negative effects, including diversifying suppliers, employing efficient import practices, and continuing support for local businesses.

He said: “Businesses should explore alternative sourcing options beyond US-dependent supply chains. Engaging more with UK, European, or Caribbean suppliers could provide greater stability in uncertain times, although transportation and shipping expenses will need to be considered.

“Leveraging bulk purchasing agreements, optimising shipping logistics and negotiating better rates with distributors could help offset cost increases.

“Encouraging domestic economic activity, including supporting local farmers, artisans and service providers, can somewhat help reduce our vulnerability to external shocks.”

Mr Thomas added: “Overall, we expect to see an increase in the cost of living as a result of these new tariffs.

“As an import-dependent economy, we must remain vigilant in assessing the potential impacts of shifting trade policies and be prepared to adapt accordingly.

“By taking strategic measures now, we can help safeguard Bermuda’s economic resilience in an increasingly unpredictable global landscape.”