Tariffs create market uncertainty and new opportunities for Guam

As U.S. Trade policies continue to shift under the Trump administration, businesses across the country are navigating new tariffs and a rapidly changing global market.
But here in Guam and with our neighbors in the CNMI, some see potential.
As an unincorporated U.S. territory, Guam sits outside the U.S. Customs zone.
That unique status could offer flexibility amid rising tariffs, including those on Chinese imports, now above 140%.
While many businesses face uncertainty, some experts say this moment could offer Guam and the CNMI a chance to revisit manufacturing.
Dr. Roseann Jones, Economics Professor and Dean of the School of Business at UOG, said, “Yes, there's a viable path for reintroducing manufacturing to Guam, particularly by leveraging its location between Asia and the US, duty-free access to US markets, and focusing on niche sectors that align with local advantages that complement rather than compete with large-scale asian manufacturing.”
She points to promising industries such as high-value specialty goods, defense/aerospace components, pharmaceutical manufacturing, and sustainable products using local materials.
KUAM also spoke with David John, Chairman of the Guam Economic Development Authority.
He said there’s potential but strategy matters.
“I think we need to define what the real long-term tariffs are going to be. I think you’re going to see 10% across the board so let’s start with that. I don’t see 10% tariffs driving the price differential enough to do huge things here,” said John. “We certainly don’t want to be thought of as just a tariff avoidant scheme. We will get shut down for that. It’s going to have to be something where we’re adding value in the [supply] chain.”
Both agreed that policies should prioritize skills development, local hiring, and environmental sustainability.
While there are still infrastructure challenges to overcome, some leaders believe Guam and the CNMI have a real opportunity to reimagine their economic role in a changing world market.