U.S. Virgin Islands — Governor Albert Bryan Jr. today responded to the newly announced federal tariffs by President Donald Trump, acknowledging the real concern over rising costs for Virgin Islands consumers, while also underscoring the opportunity for economic growth through expanded local manufacturing and strategic use of the territory’s unique customs and trade status.
While cautioning that the tariffs could lead to higher prices on imported goods and further burden families and small businesses in the Virgin Islands, Governor Bryan pointed to the possibility that the measure could also serve as a catalyst for attracting manufacturing investment to the territory.
“The administration’s push to strengthen domestic manufacturing is a direction I fundamentally agree with,” Governor Bryan said. “But it must be pursued in ways that do not place additional financial pressure on communities like ours. That’s why I’m especially concerned about how these tariffs could add to the inflationary pressures already confronting Virgin Islands families and businesses.”
At the same time, Governor Bryan emphasized that the Virgin Islands holds a unique advantage under current U.S. law: the proposed federal tariffs are not applicable to the territory due to its status outside the U.S. Customs Zone. The Virgin Islands operates under its own customs regime, which imposes a six percent duty on most imported goods.
In addition, goods manufactured in the Virgin Islands from raw foreign materials can be shipped to the U.S. mainland tariff- and tax-free. “This means products finished in the Virgin Islands qualify as Made in the USA, which gives us a distinct and powerful incentive for companies looking to avoid costly tariffs while still accessing the U.S. market,” Bryan explained.
“This is a moment to promote the Virgin Islands as a smart and strategic location for manufacturing and value-added production,” he added. “We have an opportunity to turn global challenges into local growth.”
The South Shore Trade Zone, established through legislation signed by Governor Bryan, is a cornerstone of the administration’s long-term economic development strategy. The Zone is designed to expand light manufacturing, warehousing, and export activity in the Virgin Islands—supporting job creation, attracting private investment, and reducing the territory’s dependence on imported goods.
“This is precisely the kind of economic infrastructure that positions us to lead, not just respond,” Bryan said. “The Trade Zone is a tool we can use to build resilience, encourage innovation, and diversify our economy for the future.”
Still, the Governor emphasized that even with these advantages, the territory remains vulnerable to broader economic disruptions.
“For a territory that imports the vast majority of its consumer goods, any added cost or delay in supply chains can have a real and immediate impact on our residents,” he said. “Even if the federal tariffs don’t apply directly here, the ripple effects—such as increased costs for goods sourced through affected mainland suppliers—will eventually reach our households and businesses.”
Governor Bryan said his administration will continue to closely monitor the situation, advocate for federal support, and pursue all available strategies to reduce the impact of rising costs on Virgin Islanders.
“Our top priority remains improving the quality of life for the people of this territory,” the Governor said. “We are committed to protecting working families and small businesses from rising costs. But we also recognize the need to be proactive and visionary in how we grow and strengthen our economy. This moment presents a clear opportunity to do both.”
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