The evolving situation with President Trump’s threat of tariffs and some pullback is creating uncertainty for the economy, according to local economist Dr. Roseann Jones.

“It certainly above all else creates uncertainty. And it makes it very difficult for businesses and others to plan through that uncertainty,” said Dr. Jones.

Dr. Jones teaches economics at the University of Guam and is also the Dean of its School of Business and Public Administration.

She broke down how the tariffs could impact Guam and our neighboring islands.

“In the short term, I think there’s some key impacts here. It will certainly likely raise consumer prices for essential products such as food, fuel, and construction materials. 90% of our consumer goods are imported so the effects will be broad-reaching and felt by most on Guam and in the region,” added Jones.

According to the Bureau of Statistics and Plans, the latest import data shows Guam imported $52.4 million worth of commodities in 2022.

$17. 6 million was spent on imported food and non-alcoholic beverages and $5.8 million on construction materials.

She expects there to also be an effect on the maritime and logistics sector.

“These are crucial employers. There’s going to be perhaps reduced trade and that will affect the volume of cargo they are bringing into this region,” added Jones.

A whopping 92.9% of our imports are by ship.

“It’s going to be complex and far reaching the way this seems to be unfolding,” Jones said.

But in the longer term, she said there’s some opportunities.

“It might incentivize us to have greater regional economic integration. We are seeing some of that now. We see ourselves not only as isolated islands but as a network of trade. So perhaps we will be able to structure that better with local production and interisland trade,” she added.

It’s a silver lining to strengthen our regional supply trains like in the fields of manufacturing and agriculture.

“In the end, I think we have to protect and preserve Guam and realize its role as kind of this economic anchor to the region. There’s a primary important role for Guam to see its opportunities here, and not just ‘okay, we’re going to be spending more for the goods and services we have for our economy currently,’” she said.

KUAM also reached out to the Guam Chamber of Commerce. They declined to comment but say they are closely monitoring the situation.