Guyana’s export of oil is largely responsible for the country’s trade surplus with the United States. This surplus was a deciding factor in the recently announced tariffs by President Donald Trump which has resulted in the application of a 38% rate to exports from the South American nation.
The White House recently said a 10% tariff would be applied broadly, with significantly higher rates for countries with the largest trade surpluses with the United States. These “reciprocal tariffs” are not based on whether a country has erected trade barriers against U.S. goods, but on the size of the U.S. trade deficit with its trading partners. Despite the exemption of crude oil and other commodities such as natural gas, refined petroleum products, aluminum, and gold, Guyana was identified as one of the countries expected to face an elevated tariff.
Guyana began enjoying a trade surplus with the United States in 2020, following the commencement of offshore oil production by ExxonMobil, a U.S. company. Before that, from 2014 to 2019, Guyana consistently ran a trade deficit with the U.S., importing more than it exported.
Guyana ranks 5th largest crude oil exporter in Latin America – Forbes
Guyana’s Vice President Bharrat Jagdeo stated last week that the country’s trade surplus with the United States is largely the result of crude oil exports, which began after production started in December 2019. He explained that the majority ownership of the oil-producing Stabroek Block is held by U.S. companies.
ExxonMobil and Hess, both American firms, hold a combined 75% stake in the block, where more than 11 billion oil-equivalent barrels have been discovered, and production has exceeded 600,000 barrels per day as of 2025. Under the terms of a production sharing agreement, 75% of total annual production is allocated to the consortium to recover costs. The remaining 25% (profit oil) is split equally between the government and the companies. Guyana also receives 2% royalty of all crude produced.
Based on their ownership shares, ExxonMobil and Hess are entitled to nearly two-thirds (65.625%) of total annual production from the Stabroek Block. Despite this, the exported crude is recorded as Guyanese in international trade statistics, even when it is shipped to the United States and owned by U.S. companies.
So, despite the tariffs being employed to rectify what the U.S. sees as trade imbalances, the resource responsible for that state of affairs in Guyana is controlled and extracted by American corporations.
Also, according to Jagdeo, the U.S. may be using trade data that is at variance with Guyana’s data for the determination of its tariff. This results in a rate that is higher than Guyana would have preferred. With Guyana’s data, published by UN ComTrade, the tariff would be 12% based on the Trump administration’s formula. Jagdeo has indicated that Guyana intends to engage with the United States to clarify the data and make additional arguments.
