Retailers should invest in local warehousing, diversify their suppliers and boost local food production, Tony Thompson, chief executive of Gibbons Company, told the Bermuda Chamber of Commerce members at their annual meeting.

Facing global instability due to proposed American tariffs primarily on Chinese goods and ships, Mr Thompson said retailers and the island as a whole should act before the disruptions get worse.

“Here are considerations,” he said. “Should we consider localised warehousing of key goods to reduce dependency on just-in-time shipping?

“Should we engage with regional suppliers in the Caribbean, Mexico, Canada or even further to diversify supply chains?

“Are we doing enough to incentivise local food production, and should we seriously consider vertical farming?”

Mr Thompson warned that the cost of living crisis is already squeezing consumers hard, with Bermuda’s prices in some cases more than 90 per cent higher than those in the US.

Global trade tensions, oil spikes and the disruption of shipping routes through the Red Sea have only made matters worse.

“We are an island economy plugged into a volatile world,” he said. “US tariffs on Chinese goods may seem distant, but when you’re importing electronics, home goods or raw materials from American distributors, those duties hit your bottom line.”

Mr Thompson stressed that Bermuda cannot afford to be complacent. “Bermuda’s economy is resilient, but at a crossroads,” he said. “We must adapt not just to keep pace, but to lead and turn disruptions in to opportunity.”

He told The Royal Gazette earlier this month that many retailers are already “doing their best to shield customers from price increases” and that the island may have yet to feel the full effects.