By Brendan Scanland
WASHINGTON, D.C. – Tensions in global trade may be sinking profits elsewhere — but for one small island in the Pacific, it could provide a big payoff.
Now, the small U.S. territory is hoping to turn the president’s trade war into an economic win.
It’s known for its pristine beaches, but Guam may be poised to become a hotbed for manufacturing. The island territory is making waves by turning President Trump’s tariffs into an economic opportunity for a few reasons.
“Our proximity to Asia. We’re 3 to 4 hours away from over 3 billion people and all these large metropolitan cities in Asia,” said Ed Camacho, manager of the Business and Economic Development Division at the Guam Economic Development Authority.
Officials say there are several reasons nearby countries are approaching Guam. Perhaps the biggest reason: “Guam is outside the U.S. customs zone, so the tariffs don’t apply to us,” said Congressman James Moylan (R-Guam).
That means Guam could offer some relief for nearby countries feeling the heat from the president’s tariffs– like South Korea, Japan and others.
“There’s a lot of interest and businesses wanting to come to Guam and develop and manufacture products in Guam, hopefully to get it into the U.S. tariff-free,” said Camacho.
Guam is targeting manufacturing sectors like autos, drones and telecoms — industries hit hard by tariffs. And it’s not just a short-term gain. Officials say it could jumpstart an economic revival after COVID-19 brought tourism- a massive part of Guam’s economy- to a halt.
“Absolutely. Workforce development is very important for us, creating new, high-paying jobs. Some of these companies will provide that opportunity for the people of Guam,” said Camacho. “It would be a boost in the arm if we can get some of these countries coming to Guam and look at some type of manufacturing for export in the U.S. It’s going to create high-level positions that pay more for our people.”
“This opportunity will really help bring in new industries,” said Moylan. “So we really have to diversify now and this will be helpful for us.”
A small island thinking big — looking to turn uncertainty into economic prosperity.
