Chief Minister: Global trade tariffs unlikely to significantly impact Manx economy

Alfred Cannan tells Tynwald the Island’s service-based economy offers resilience amid global uncertainty

The chief minister has suggested that the rise in global trade tariffs is unlikely to have a substantial impact on the Isle of Man’s economy, due to the Island’s strong focus on services rather than goods.

In response to a Tynwald question from Arbory, Castletown and Malew MHK Tim Glover, Alfred Cannan said the Isle of Man Government is working closely with the Chamber of Commerce to understand the potential implications of increasing tariffs internationally.

However, he noted that as tariffs only apply to goods, and the Manx economy is largely service-based, the overall impact on the Island is expected to be limited.

He urged any businesses with concerns to contact the Department for Enterprise for support and guidance.

When pressed further by Mr Glover on whether there had been any impact on the Isle of Man’s investments and reserves, Alfred Cannan said he did not have specific figures to hand, citing the high level of uncertainty in the global economy due to what he described as 'almost daily changes'.

Treasury Minister Alex Allinson added that such figures were available via the government's economic dashboard, but emphasised the importance of maintaining a long-term perspective rather than focusing solely on short-term variations.

In terms of engagement with the UK Government, Mr Cannan said the Council of Ministers had been "extremely good" at keeping the Island informed and involved.

He expressed confidence that the Isle of Man remained on Westminster’s radar with regard to trade policy developments.

The discussion also touched on the 90-day temporary pause on US tariffs recently introduced by President Donald Trump.

When asked what contingency planning the Isle of Man was undertaking in case tariffs were reintroduced, Mr Cannan said it was difficult to prepare for changes when economic policy 'seems to be changing every other day'.

He highlighted the challenge of planning amid global uncertainty and unpredictable shifts in international trade policy.