The External Relations Minister has said that Jersey’s financial services industry offers “a safe harbour during times of geopolitical turmoil”, as he reacted to US President Donald Trump’s announcements regarding new tariffs.
Deputy Ian Gorst said that the Government would “monitor the situation over the coming weeks”.
President Trump’s recently-announced tariffs will affect dozens of nations and include a baseline rate of 10%, as well as a raft of individualised rates targeting some key trading partners – including the European Union at 20%.
President of the European Commission, Ursula von der Leyen, described the move as “a major blow to the world economy” that will have “immense consequences” and “hurt consumers around the world”.
UK Prime Minister Sir Keir Starmer has said that “clearly there will be an economic impact from the decisions that the US has taken” and that “nobody wins in a trade war”.
In a statement, Deputy Gorst said: “We are carefully considering the potential impact of the announcements made by the US and will monitor the situation over the coming weeks.
“The tariffs relate to trade in goods and not services. Jersey’s financial services industry is resilient and offers a safe harbour during times of geopolitical turmoil.
“We remain focused on supporting islanders and businesses in Jersey in the long term, ensuring that the island is a good place to live and do business in.”
Jersey Finance CEO Joe Moynihan said the measures announced by the US were “significant” and would have an impact on global markets.
He continued: “As far as our finance and professional services industry here is concerned, this market volatility once again highlights the important role centres like Jersey play in providing stability and certainty to international businesses and investors.
“In addition, Jersey has established a positive relationship with the US market over recent years, and that should stand us in good stead – at the same time, we have a really diversified finance sector in terms of the geographies and sectors we operate in, which again can help mitigate a degree of uncertainty.”
He added: “Nevertheless, the economic impact these global tariffs will have is real and there will be knock on effects on trade and investment flows.
“We will need to continue to monitor the situation and work hard to ensure our message is heard.
“This is certainly not the first time we have encountered significant global market volatility, though, and we have a good track record in adapting as an industry.”
Jersey Consumer Council chair Carl Walker said: “While we might not see an immediate impact on consumers’ lives due to direct trade with America, a bigger concern may lie with UK and European-based producers whose market share is going to diminish and may have to start putting costs up as a result.
“So we could see a medium or longer-term risk where the cost of living rises as a knock-on effect of that.”
