Jagdeo Cries Foul Over U.S. Tariffs While ‘Squeezing Citizens’ at Home

The Government of Guyana, through Vice President Bharrat Jagdeo, expressed shock and concern this week over the 38% tariffs recently imposed by the United States on Guyanese exports, pledging to “engage” American officials to seek clarity and reduction. But for many Guyanese citizens and small business owners, the irony is impossible to ignore.

At home, Guyanese continue to suffer under one of the most punishing import tax regimes in the region, enforced by the Guyana Revenue Authority (GRA) and sanctioned by the People’s Progressive Party (PPP) government, a regime that includes both a burdensome 14% Value Added Tax (VAT) plus consumption taxes as high as 70% for a wide variety of imported items.

“It’s laughable to see the government upset about U.S. tariffs when they’ve been overtaxing their own people for decades,” said a Georgetown-based business owner. “Let’s be honest, if you import goods into this country, especially from the U.S., the government treats you like a criminal until proven otherwise.”

From medical supplies to electronic items and food items to household tools, imports from the United States are subject to cumulative taxes that often exceed 50% of the item’s original cost, once VAT plus consumption taxes, and shipping markups are applied.

The result? Higher costs for consumers, reduced purchasing power, and stifled innovation, especially in sectors like healthcare, education and tech where access to affordable tools is critical.

“And yet, with record-breaking oil revenues, a booming GDP, and billions flowing into Guyana’s Natural Resource Fund, the government has done little to pass those benefits on to everyday citizens through meaningful tax reform”, said an anonymous observer.

“They say they want a digital economy, but they’re taxing educational imports like non-computer equipment, and at outrageous rates,” said a local educator from region 6. “If you’re not politically connected, you get no breaks.”

In fact, Guyana’s VAT regime remains among the most aggressive in CARICOM, with little transparency and a bureaucracy that actively discourages small and medium importers from participating in the market. “Requests to remove VAT on essential items are often slow-walked or ignored”, said an opposition politician.

The government’s own allies in the Private Sector Commission (PSC) and Georgetown Chamber of Commerce and Industry (GCCI) have remained notably silent about the suffocating tax burdens on U.S. imports, possibly because many of their wealthiest members benefit from protectionist practices that limit competition and inflate domestic prices.

But the U.S. tariffs could change the game.

“This reciprocal move by the U.S. is a wake-up call,” said a senior importer who requested anonymity. “If demand for Guyanese goods drops, the same elite business class that benefits from this tax system will feel the pinch.”

With pressure now mounting from both foreign and domestic fronts, some believe the government may finally be forced to reexamine its antiquated and punitive tax policy.

Until then, the message from the GRA remains clear. Guyana welcomes foreign investment, as long as the burden is shouldered by its citizens. And while Vice President Jagdeo pleads with Washington for tax relief, many Guyanese are asking, When will our own government do the same for us?