The Federation’s National Cost-of-Living Task Force continues to prioritize the economic stability of Saint Kitts and Nevis amid evolving global challenges, including recent U.S. tariff impositions impacting international trade.

A release from the Federal Government says “the Task Force remains steadfast in its mission to shield citizens and residents from rising costs while adapting strategies to address new pressures on supply chains and local prices.”

A tariff is a tax imposed by one country on goods imported from another country. These taxes are typically designed to protect domestic industries but can inadvertently increase costs for nations reliant on imports. For Saint Kitts and Nevis — a small island economy dependent on imported essentials like food, fuel and construction materials — U.S. tariffs may lead to higher import expenses.

Since 2024, the National Cost-of-Living Task Force has prioritized close coordination with customs authorities, importers, retailers, and regional bodies to track price fluctuations and ensure transparency in pricing.  A key focus has been the VAT Holiday Initiative, which lowered the Value Added Tax (VAT) from 17 to 13 percent for the first half of 2025.  The Task Force is evaluating long-term measures, including diversifying trade partnerships.