Fiji’s Trade Tensions: Will New US Tariffs Sink Exports?

Fiji’s Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has expressed concerns over the recently announced 32 percent tariff on Fijian exports to the United States by President Donald Trump. Prasad emphasized that while 96 percent of US imports to Fiji face zero or minimal duties, the new tariff is unusually high and may hinder the longstanding trade relationship between the two nations.

The new tariff follows an established 63 percent tariff imposed by Fiji on US imports, intended to level the playing field in trade. Professor Prasad acknowledged that the Fijian government is in discussions to understand the specifics and rationale behind this recent increase in duties. The US is a critical trade partner for Fiji, accounting for about ten percent of the nation’s overall trade and serving as a key market for tourism and remittances.

Fiji has maintained a trade surplus with the US for the past three years, with exports close to F$500 million annually, notably comprising mineral water, kava, various fish products, and wood artifacts. The recent trade relationship dynamics indicate a slight decline in surplus from $293 million in 2022 to $63 million in the last year, as imports from the US surged from $190 million in 2022 to $425 million in 2024.

The government is determined to work closely with stakeholders and their US counterparts to mitigate the adverse effects of these tariffs. Despite the challenges presented, there is a sense of cautious optimism, as some analysts suggest that restructuring in global supply chains may offer opportunities for Fiji to access lower-priced imports.

Additionally, as discussed in previous articles, economists indicate that Fiji may navigate these new trade challenges effectively due to its strong reliance on certain exports, particularly bottled water, which continues to thrive in the US market. The proactive approach adopted by the Fijian government could pave the way for future growth and resilience in a rapidly evolving global trade environment.