Letter to the editor: Guam's tariff-free status provides unique 0pportunity

By Sen. William Parkinson

Guam faces a historic opportunity through Bill 102-38, the Guam Tariff Advantage Development Act. As a U.S. territory, Guam uniquely benefits from exemptions under federal tariff regulations as noted in Headnote 3(a) of the U.S. Harmonized Tariff Schedule, allowing raw materials and parts to enter Guam and assembled or manufactured goods to exit Guam, both exempt from the high tariffs imposed amid escalating global trade tensions.

President Trump's tariffs are designed explicitly to bring manufacturing back to American soil and Guam can strategically position itself to reap the economic rewards with our tariff exemption. This special status, largely unknown to many, is a powerful economic tool for our island.

We need to put this tool to work now. By encouraging manufacturers to relocate operations here, the bill aligns directly with President Trump’s stated goals—reshoring industry, creating American jobs, and revitalizing U.S. manufacturing.

Nations around the globe have engaged in tit-for-tat tariffs, and businesses are scrambling for ways to avoid costly penalties on imported products. In this geopolitical environment of high tariffs and “America First” manufacturing, Guam’s tariff exemption is a golden opportunity.

Critics argue Guam lacks the capacity for manufacturing. But not all manufacturing is resource-heavy or requires large-scale labor. Specialized sectors like electronics, medical devices, or pharmaceuticals rely more on innovation than extensive labor. We’re not trying to turn Guam into the next Shenzhen, and we don’t need to. Even a handful of specialized industries could bring substantial economic growth.

Consider a clear economic example: a company importing $100 million of goods facing a 104 percent tariff, like those imposed on China, would incur an additional $104 million cost annually. Relocating manufacturing operations to tariff-exempt Guam immediately removes that expense. This powerful incentive transforms Guam into an attractive destination for businesses looking to stay competitive while adhering to America's reshoring strategy.

Bill 102-38 empowers Guam to actively participate in America's manufacturing revival, ensuring our island benefits from geopolitical trade shifts rather than merely observing from the sidelines. This bill lets us step onto the playing field and claim our share of growth.

For the young technician looking for a career beyond federal employment, for the small business owner dreaming of building something that lasts, this bill creates a real future right here at home. It positions Guam as a key player in a changing economic landscape and lays the groundwork for sustainable growth and greater economic self-sufficiency.  

President Trump’s tariff policies have opened a door, and Bill 102-38 will help Guam walk through it. Let's seize this moment. The global economy is shifting and Guam can lead, not follow. The door is open. Let’s be the first through it.

Sen. Wiliam Parkinson is a member of the 38th Guam Legislature.