Legal Opinion Forces Delay of USVI’s 25% Tariff Discussion

A high-level meeting between Governor Albert Bryan Jr. and members of the U.S. Virgin Islands Legislature, originally set for February 26, was postponed following a legal opinion clarifying that the local government lacks the authority to impose a proposed 25% tariff on goods imported from the British Virgin Islands.

The meeting was expected to focus on the administration’s controversial tariff proposal, which would directly impact trade between the BVI and USVI. However, an opinion issued Tuesday by Senate legal counsel Sharline Rogers determined that only the U.S. president has the authority to impose tariffs, a power granted by the U.S. Constitution and delegated through the Reciprocal Trade Agreements Act of 1934.

According to a spokesperson from Government House, Governor Bryan is now exploring legal avenues to introduce the tariff while also seeking a collaborative approach to address economic concerns within the charter and yacht industries of both the USVI and BVI. The governor intends to consult with local stakeholders before taking any further action.

Senator Kenneth Gittens, vice president of the Legislature, had requested the legal review to clarify the governor’s authority on the matter. The opinion reinforced that Congress holds the sole power to regulate trade duties and that any attempt by the USVI to unilaterally impose a tariff would be legally invalid.

Richard Motta Jr., Government House communications director, stated that Governor Bryan is aware of these legal constraints but remains committed to pursuing all possible options, including making a formal request to the federal government if necessary. Before doing so, Bryan plans to meet with members of the 36th Legislature and key economic stakeholders.

“The governor is working to bring together all relevant parties to find a fair resolution that benefits the charter and yacht industries in both the USVI and BVI, as well as other economic interests between the two territories,” said Motta.

In addition to the proposed tariff, the Bryan administration has floated the idea of introducing entry and exit fees for non-Virgin Islanders traveling between the two territories. This proposal is also expected to be part of the broader discussions between the USVI and BVI governments.

The legal opinion also highlighted that while the USVI Legislature has the authority to impose customs duties on goods imported for consumption within the territory, any broader tariff measures would require federal approval.

Governor Bryan is expected to hold further discussions with both USVI lawmakers and BVI officials before making any definitive decisions. Senate President Milton Potter noted that Bryan’s recent visit to Washington, D.C., may provide additional avenues to address trade concerns between the two territories.

Despite the legal setback, Bryan’s administration remains focused on engaging with senators and the BVI government to explore mutually beneficial solutions. “As it stands today, the governor’s posture remains unchanged—nothing is off the table,” Motta said. “The first step is to have these conversations, and that remains a priority.”

The postponed meeting between Governor Bryan and the USVI Legislature has yet to be rescheduled.