Bryan said new federal tariffs could raise costs in U.S. Virgin Islands while creating manufacturing opening

Gov. Albert Bryan Jr. said on April 3, 2025, that newly announced federal tariffs by President Donald Trump could increase costs for Virgin Islands consumers and businesses, while also creating an opening to attract manufacturing investment to the territory.

Bryan said the U.S. Virgin Islands is outside the U.S. Customs Zone and operates under its own customs regime, which imposes a 6% duty on most imported goods. He said the proposed federal tariffs do not apply to the territory under current U.S. law.

He also said goods manufactured in the Virgin Islands from raw foreign materials can be shipped to the U.S. mainland tariff- and tax-free, and said that status could make the territory attractive for companies seeking access to the U.S. market while avoiding the new tariffs.

Bryan pointed to the South Shore Trade Zone as part of that effort. Government House said the zone was established through legislation signed by Bryan and was intended to expand light manufacturing, warehousing and export activity in the territory.

Bryan also said the territory remained vulnerable to broader supply-chain disruptions and higher prices because it imports most of its consumer goods, including goods sourced through mainland suppliers affected by the tariffs.

He said his administration would monitor the situation, seek federal support and pursue measures to reduce the impact of rising costs on Virgin Islanders.

Official source: https://www.vi.gov/governor-bryan-expresses-concerns-over-new-federal-tariffs-highlights-opportunity-for-growth-in-local-manufacturing/