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THE EDITOR: Since his inauguration in January, US President Donald Trump has had every nation on this planet in turmoil and confusion because of tariffs imposed on imports into the US. The president believes that tariffs would: * Generate revenue and reduce the deficit (spent more than earned) of US$1.78 trillion for the world’s largest economy. * Protect American industries by increasing the cost of imported goods to encourage local businesses to be more competitive and produce goods domestically, creating jobs and stimulating economic growth. This should discourage waste and positively impact the trade deficit. * Restrict imports of strategic materials and goods that have the potential to threaten US security. The UNC government assumed office in May and inherited a $7 billion deficit from the previous PNM government. Finance Minister Davendranath Tancoo, in his recent budget presentation, has shown how entirely opposite the UNC government intends to manage this economy. Irrespective of low oil and gas production and reduced revenue, the minister has made no effort to cut the "real" deficit by reducing imports, but instead encouraged importation of foreign-used vehicles and reduced super gas by $1 a litre. In effect, the minister has negatively impacted our deficit, while this $500 million "gift" could have been better utilised paving and repairing the deplorable road network inherited from the previous government. This would have improved the nation’s productivity with less wasted time in traffic, dodging potholes, not to mention the wear and tear to vehicles While the largest economy in the world is attempting to encourage local production, creating employment and stimulating the economy, our newly-minted minister has chosen to make TT industries less competitive by increasing their electricity and NIS costs. Instead of imposing a tariff on imported goods to protect SMEs, the minister chose the alcoholic beverage industry, this country’s most internationally competitive business, on which to impose heavy taxes. A recipe for closures, lay-offs, reduced forex earnings. The closure of the Nutrien Pt Lisas facility further adds to the pain of future revenue shortfalls. The silence is deafening as we observe the destruction of our once proud manufacturing capacity. It is never too late to humbly admit mistakes. Let’s hope good sense prevails before we are forced to taste the bitter medicine from the IMF. ROBERT FORTUNE
