• Starting December 18, 2025, American Airlines is set to increase its flight capacity on key Jamaica to U.S. routes, with more flights into Kingston and St. Mary’s Ian Fleming International Airport, making travel more convenient for visitors and residents alike.
• Minister of State in the Ministry of Tourism, Senator the Hon. Delano Seiveright, noted that the expansion of American Airlines’ flight services to Jamaica is expected to result in a big boost for the upcoming winter tourist season.
• The increase will see American Airlines operate two daily flights between St. Mary’s Ian Fleming International Airport and Miami, a significant enhancement from previous schedules. Additionally, the airline will boost its service between Kingston’s Norman Manley International Airport and Miami from three to four daily flights, providing travellers with more flexibility and options.
• The expanded services are set to complement American Airlines’ existing summer operations, which currently feature 15 peak daily flights. With the winter schedule, the airline will offer over 20 peak daily departures to Jamaica, connecting the island with seven U.S. destinations, including Miami, New York, Boston, Philadelphia, Charlotte, Dallas-Fort Worth, and Chicago.
• The increased flights will not only benefit leisure travellers but will also improve logistical convenience for passengers whose final destinations include St. Ann, St. Mary, and Portland. “With flights landing directly into Ian Fleming International Airport in Boscobel, travellers arriving from long-haul flights will enjoy a shorter, more comfortable journey, avoiding the lengthy drive from Montego Bay. This development is expected to bolster tourism in the eastern parishes, providing easier access to attractions and accommodations in those regions,” Mr. Seiveright told JIS News.
• American Airlines’ airline’s decision to grow capacity in Jamaica by approximately 20% year-over-year underscores its commitment to strengthening its presence on the island and supporting Jamaica’s economic growth through tourism.

(Source: JIS)

• Despite record growth in recent years, the Dominican Republic’s aviation and tourism sectors are facing increased international competition and fluctuating global conditions, according to Jacqueline Mora, Technical Vice Minister of Tourism.
• Speaking at the International Congress of Finance and Audit (CIFA) and the Latin American Seminar of Accountants and Auditors (Selatca), Mora emphasized the need for strategic adaptation to maintain resilience and competitiveness.
• Mora highlighted that Asian countries are emerging as strong tourism competitors by developing new destinations, posing a direct challenge to Caribbean nations. In response, the Dominican Republic has focused on expanding air routes and increasing flight availability.
• As a result, South American tourism to the country has grown significantly, with visitors from the region rising from 8% to 15%, and Argentina becoming the top source of travelers.
• Despite global disruptions such as the COVID-19 pandemic, the Russia-Ukraine war, and instability in the Middle East, the Dominican Republic has shown resilience. Since the start of the year, Dominican Republic welcomed 6,145,008 visitors during the first six months of 2025—its highest tourism figure in history, and could reach 12 million visitors by year’s end.
• The launch of Arajet—a Dominican airline backed by foreign investment—has played a key role in that effort. In under three years, Arajet has become one of the country’s top five airlines and aims to position the Dominican Republic as a major Latin American air hub.

(Source: Dominican Today)

• Most of the Bank of Mexico's governing board supports smaller cuts to the key interest rate, minutes from June's rate decision showed on Thursday, signaling a more cautious approach as Mexico grapples with stubborn inflation and sluggish growth. All four board members who backed June's 50-basis-point cut — the fourth in a row — signalled openness to a slower pace going forward. At least two said the June move should be the last of that size.
• Annual headline inflation accelerated in May beyond the central bank's target range of 3%, plus or minus one percentage point. While it eased in June to 4.32% after four months of increases, it remains above target. Crucially, the core inflation index, a key gauge that strips out volatile prices, accelerated to 4.24% – its highest level since April 2024.
• For the board's majority, "the central argument is that the weakness in the economy will create slack conditions that would allow inflation to converge toward the 3.0% target," analysts from Actinver said. One of those governors noted the bank's current monetary policy stance "is appropriate to address risks to inflation on both sides of the balance," adding that "going forward, a more gradual approach will be adopted during the rate-cutting cycle."
• Another suggested that "adjustments of lesser magnitude" could be considered given the inflation outlook. Banxico, as Mexico's central bank is known, has cut its benchmark interest rate by 325 basis points since early 2024 and by 200 points this year alone, as inflation has eased from its 2022 highs.
• Deputy Governor Jonathan Heath, who cast the sole vote at the June meeting to hold the rate at its previous level of 8.50%, called for prudence while making his dissent argument. Heath said the expectation that inflation would naturally become low due to "greater slack conditions" is "unrealistic" because even though there is economic stagnation, current forecasts do not point to a deep enough recession that would sufficiently weaken aggregate demand.
• Analysts polled by the central bank in the second half of June forecast the Mexican economy growing just 0.2% this year. The central bank's latest forecast, in late May, estimated growth at 0.1% for 2025.

(Source: Reuters)

• President Donald Trump on Saturday, July 12, 2025, threatened to impose a 30% tariff on imports from Mexico and the European Union (EU) starting on August 1, 2025, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.
• In an escalation of a trade war that has angered U.S. allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President, Ursula von der Leyen, and Mexican President, Claudia Sheinbaum, that were posted on his Truth Social media site on Saturday. The EU and Mexico, both among the largest U.S. trading partners responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the U.S. for a broader trade deal before the deadline.
• Trump sent similar letters to 23 other trading partners last week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper. The U.S. president said the 30% rate was "separate from all sectoral tariffs," indicating 50% levies on steel and aluminium imports and a 25% tariff on auto imports would remain. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs.
• While some investors and economists have noted Trump's pattern of backing off his tariff threats, the spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation. But with the stock market recently hitting record highs and the U.S. economy still resilient, Trump is showing no signs of slowing down his trade war. He promised to use the 90-day delay in April to strike dozens of new trade deals, but has only secured framework agreements with Britain, China and Vietnam.
• Trump's letter to the EU included a demand that Europe drop its own tariffs. Von der Leyen, said the 30% tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic." The EU had been scheduled to impose “countermeasures” starting Monday, July 14, 2025, at midnight Brussels time (6 p.m. EDT), however, the retaliatory tariffs have been suspended in hopes of reaching a trade deal with the Trump administration by the end of the month.

(Source: Reuters & Global News)

• In a July 11, 2025 research article by Fitch BMI, there are two risks that could result in an increase in volatility. First, is the escalation in trade tensions as the US administration raises the tariff rate for certain economies. Secondly, the US administration is increasing pressure on Federal Reserve Chair Jerome Powell, which could make markets uneasy.
• Regarding trade tensions, while the extension of the July 9 deadline to August 1 provides more time for negotiations, U.S. President Donald Trump has simultaneously raised tariff rates for several economies, leading to greater uncertainty. Trump might feel emboldened to raise tariffs given that inflation has thus far remained well anchored, the labour market is holding steady, and equity markets hit new highs. However, it is believed that such a strategy would pose significant downside risks to US and global growth.
• Companies may start to see higher inventory costs as their front-loaded inventory is depleted, and they start to rebuild inventory at higher costs.  This could feed into higher prices if they pass on the additional cost, or higher unemployment if they are unable to do so, and this could mean tighter margins. Additionally, markets do not seem to be pricing in a significant escalation in tensions, which could lead to another sharp rise in equity and bond market volatility. Notably, compared with April, the economy is in a weaker position to absorb another shock.
• Meanwhile, the U.S. administration is also increasing pressure on Federal Reserve Chair Jerome Powell, which could make markets uneasy. The Financial Times reported that the White House has accused Jerome Powell of 'grossly’ mismanaging the refurbishment of the Federal Reserve’s headquarters, and has come under attack from various Republican members of Congress.
• If the market interprets this as a potential avenue for the administration to relieve Powell of his duties, or if this results in the decision by Powell to step down, this could lead to a significant rise in financial market volatility. For now, it is believed that Powell will remain as Chair until his term ends in May 2026, and betting markets only assign a 12% probability that he is removed from his post, but any risk to this could lead to economic uncertainty and a rise in financial market volatility.

(Source: Fitch Connect)

• Chief Executive Officer and Technical Director of the Caribbean Community (CARICOM) Private Sector Organisation (CPSO), Dr. Patrick Antoine, has proposed addressing trade inefficiencies as a key strategy to mitigate the potential impact of the impending 10.0% baseline tariff on regional exports to the United States (US).
• Speaking during a Business Breakfast Forum in Montego Bay on Tuesday (July 8), Dr. Antoine noted that CARICOM is facing a potential fallout of approximately US$542.3Mn per annum consequent on the proposed implementation of the baseline tariff, according to a CPSO study conducted across Caribbean nations.
• “There are instances where our inefficiency from trade facilitation, inefficiency at ports, et cetera, account for nearly 10.0% of the export value of some of our products in some of the countries. So again, if we were to drive down the inefficiencies, we could, in fact, overcompensate for the loss,” he opined.
• Antoine noted that by addressing trade inefficiencies, the Caribbean could unlock substantial cost savings across key sectors. “So, all we’re saying in the context of all of this is to look at logistics and connectivity. We need to look at the impact on the negotiations that we have, because about 70.0% of the goods that we export are not consumed in the community,” the CPSO Head maintained.
• CPSO Chairman, Gervase Warner, supported Dr. Antoine’s position, stressing that CARICOM member states must prioritise export market diversification. Mr. Warner emphasised that CARICOM nations must look beyond short-term relief from US trade policies and actively pursue strategic partnerships that strengthen the region’s long-term economic resilience and global competitiveness.

(Source: JIS)

• The Government has welcomed the European Parliament’s endorsement of the European Commission’s recommendation to delist Jamaica and Barbados from the European Union (EU) roster of high-risk third countries for anti-money laundering and counter-terrorism financing (AML/CFT).
• The decision, on Wednesday (July 9), followed concerns raised by Jamaica’s Prime Minister, Dr. the Most Hon. Andrew Holness, and Prime Minister of Barbados, Hon. Mia Mottley, regarding delays in removing both countries from the list.
• In their addresses during the just-concluded 49th Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) in Montego Bay, both leaders noted that Jamaica and Barbados remained on the EU’s high-risk list due to procedural technicalities within the European Parliament.
• In a communiqué following the CARICOM Meeting, the European Parliament noted that in its vote on Wednesday (July 9), it decided to “not object to the Commission’s proposal on updating the EU list of high-risk third countries and territories with deficiencies in their regime on fighting money-laundering and terrorist financing, as none of the resolutions on objection secured majority support”. As a result, Jamaica, Barbados, Gibraltar, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates were officially removed from the EU list.
• Reacting to the update on his official social media platforms, Prime Minister Holness described the development as a significant step forward for Jamaica and Barbados, as well as the wider CARICOM region.

(Source: JIS)

• Barbados is set to become the first nation to use a new standardised debt swap facility aimed at helping multiple countries use money for development projects instead of high-interest loan payments.
• Dubbed a "debt-for-resilience" facility, the multi-billion-dollar set-up is backed by four major development banks and is expected to see two or three more countries in the Caribbean region, where it is focused, sign up by year-end. Barbados is on course to be the test case later this year for what is expected to be the facility's formal launch at the U.N. COP30 climate summit in Brazil in November, its Finance Minister, Ryan Straughn, highlighted.
• Straughn said several other Caribbean countries - which he did not name - had also agreed in principle to undertake swaps of their own as well. Under the programme, countries would buy back portions of their most expensive government bonds from the open market. They then cancel them and issue new ones with a significantly lower interest rate, thanks to the development banks' credit guarantees that effectively reduce the risk for bond buyers.
• Debt swaps have become increasingly popular in recent years as a way for developing countries to replace expensive government debt with cheaper bonds and use the savings on projects such as environmental conservation, schools, or infrastructure.
• But the new debt-for-resilience mechanism is a leap forward as it largely standardises many of the legal and transactional complexities that have meant some recent swaps have taken years to execute and produced relatively modest debt savings. Barbados will have to say what it will spend the money on beforehand, but the resilience tag gives it wide scope on what the projects can be.

(Source: Reuters)

• The Dominican Republic welcomed 6,145,008 visitors during the first six months of 2025—its highest tourism figure in history. This represents an increase of nearly 2 million visitors compared to the same period in 2019 and over 185,000 more than last year.
• President Luis Abinader and Tourism Minister David Collado announced the record-breaking figures at an event in Santo Domingo, emphasising the sector’s vital role in the national economy. President Abinader noted that the country’s tourism boom, driven by strong public-private collaboration, makes this the ideal time to invest in the sector.
• Minister Collado highlighted that the January–June total includes 4.5 million air travellers and a historic 1.63 million cruise passengers. He reported a 48% increase over 2019, 15% over 2023, and 3% over 2024.
• The majority of visitors came from the United States (45%), Canada (18%), Argentina (6%), and Colombia (4%). The busiest airports were Punta Cana, Las Américas, and Cibao. Hotel occupancy during this period surpassed 77%.
• Collado projected that, at this pace, the country could reach 12 million visitors by year’s end, marking an unprecedented peak for Dominican tourism.

(Source: Dominican Today)

• Due to the inelasticity of demand for copper, a tariff on copper is anticipated to push up United States (U.S.) domestic prices. The tax would be paid by American consumers rather than foreign producers. Indeed, domestic U.S. copper prices have significantly diverged from prices elsewhere since President Donald Trump first announced threatened tariffs in March. Copper traded in New York Stock Exchange jumped by over 10% on July 8, 2025.
• With copper being a key input in the manufacturing sector, this will increase the price of U.S.-made manufactured goods and reduce U.S. firms’ competitiveness compared to Chinese or European rivals, particularly in the automotive and electronics industries, where copper usage is most intensive.
• Counterintuitively, implementing a tariff could potentially harm the U.S. copper refining industry, as a widening gap between U.S. and global copper prices may incentivise foreign exporters to redirect finished copper products to the U.S. market, increasing competition and undermining domestic refiners.
• Fitch expects that the measures will likely deter U.S. copper exports, valued at approximately US$12.2Bn in 2024. However, the tariffs are unlikely to significantly impact copper producers that do not export to the U.S., with Chile being a notable exception. The primary concern for exporters is a potential decline in U.S. copper consumption, which Fitch considers unlikely. Additionally, producers whose export prices are linked to U.S. copper prices could potentially benefit from higher prices resulting from reduced U.S. imports.
• Nevertheless, Fitch views the tariff threat primarily as a bargaining tactic rather than a genuine policy proposal. The U.S. is actively engaged in negotiating numerous trade agreements with various economies, and this recent proposal may be an attempt to leverage concessions on unrelated issues. Since the 50% tariff threat was conveyed verbally and lacked official backing, the final implementation will likely be less severe, potentially reduced in scope over the coming weeks. Most investors have anticipated that any U.S. tariffs on copper would be closer to 25%, indicating a market expectation of a more moderate approach.

(Source: Fitch Connect)