Nanny Cay Marina in the Virgin Islands filled with yachts. The US federal government is reportedly mobilising a 'whole of government approach' in response to what has been described as unfair trade actions by the Virgin Islands that are financially harming US Virgin Islands (USVI) marine small businesses. Photo: Nanny Cay Resort & Marina/Facebook

Small Business Administration Atlantic Regional Administrator Matt Coleman said the SBA is leading efforts to address the economic challenges through coordination with federal partners, including the US Department of State, the Department of Commerce, the Department of Homeland Security, and other agencies and sub-agencies. Photo: SBA

USVI Governor Albert A. Bryan Jr. (left) and Virgin Islands Premier Dr the Hon Natalio D. Wheatley (R7) (right) shake hands following discussions on the increased charter yacht fees in 2025. Mr Bryan then turned to President Donald J. Trump to get the US to strong arm the Virgin Islands. Photo: Facebook

This is according to Small Business Administration Atlantic Regional Administrator Matt Coleman, who visited the USVI last week. Mr Coleman, according to the VI Consortium, said the VI government recently enacted trade measures that “monetarily punish US marine small businesses crossing that historically shared waterway between our islands,” including fee hikes “from $400 to $24,000 annually.”

“That’s a whopping 6,000% increase,” Coleman said, adding, “and it’s absolutely numbing.”

‘Whole of government approach’

Coleman stated that the SBA is leading efforts to address the economic challenges through coordination with federal partners, including the US Department of State, the Department of Commerce, the Department of Homeland Security, and other agencies and sub-agencies.

“The SBA is leading the charge to address these economic challenges through a whole of government approach,” he said.

Project Fair Waters, a coalition representing a wide span of the USVI’s maritime economy — including charter operators, marine suppliers, fuel providers, marinas, restaurants, grocers, hoteliers and transportation operators — has asserted that the new structure has already prompted at least 90 charter vessels that once operated from the US Virgin Islands to relocate to the Virgin Islands.

According to the coalition, the shift has pulled nearly $14 million in direct spending out of the US Virgin Islands economy. Projected losses, when accounting for provisioning, maintenance, hospitality and transportation impacts, are estimated to reach $100 million annually.

VI don’t get $25B but ‘we too have to eat’- Gov Bryan Jr

The Commercial Recreational Vessel Licensing (Amendment) Act, 2025, was passed by the House of Assembly of the Virgin Islands on May 6, 2025, assented to by Governor Daniel Pruce, the United Kingdom’s (UK) representative, on May 30, and took effect on June 1, 2025. The legislation amended the VI’s 1992 licensing framework to impose expanded licensing requirements, new charter limits, time restrictions, and revised fee structures on commercial recreational vessels based outside the territory.

Late last year, USVI Governor Albery A. Bryan Jr wrote to President Trump and his Cabinet seeking federal action in dealing with the increase in charter vessel fees by the VI.

Governor Bryan, in his final State of the Territory Address at Earle B. Ottley Legislative Hall on St Thomas, USVI, on January 26, 2026, stated that the USVI received $25B in federal funding for its recovery and development, while the VI didn’t have access to such funding; however, the USVI still wanted a piece of the VI’s marine pie.

“We respect that the BVI needs additional revenue to pave their roads. They don’t have twenty-five billion dollars. They need money to build their infrastructure and move their society forward, but we too have to eat, and their policies should not and will not create barriers in these Virgin Islands that impede our economy and commerce,” Governor Bryan boldly stated in his address.

According to the VI Consortium, because the Virgin Islands’ external affairs fall under the authority of the United Kingdom, territorial officials in the USVI cannot independently negotiate for relief.