Fiji will now face a 32% tariff on its exports to the United States following the introduction of President Donald Trump’s global reciprocal tariff policy.
The changes, announced at the White House on Wednesday, aim to align US tariff rates with those imposed by its trading partners, the President said.
“Trade deficits are no longer merely an economic problem. They are a national emergency,” Trump said while unveiling the new policy.
The United States is Fiji’s largest export market, accounting for nearly 32% of its total merchandise exports.
According to Reserve Bank of Fiji, 2021- 2022 annual report, key Fijian exports to the US include bottled water (Fiji Water), gold, textiles, and agricultural products such as kava.
In 2023, Fiji exported FJ$267 million worth of bottled water, with FJ$241 million going to the US.
Trump stated that the tariff adjustments are intended to balance trade relationships.
“In many cases, the friend is worse than the foe in terms of trade,” he said.
“Why are we doing this? At what point do we say you got to work for yourselves?”
According to the new policy, countries that impose high tariffs on American goods will face similar rates in return.
Fiji currently imposes a 63% tariff on US goods, and Trump said the new rate was a response to that.
“This is not full reciprocal, it is kind reciprocal,” he said.
Other Pacific nations will also see changes in their trade relationships with the US.
Nauru, Norfolk Island, and Vanuatu will face tariffs of 30%, 29%, and 22% respectively. Meanwhile, Australia, New Zealand, and Papua New Guinea will see smaller increases, with rates set between 10% and 20%.
Several Pacific nations, including the Marshall Islands, Samoa, Tonga, Solomon Islands, Cook Islands, and Kiribati, will face a 10% tariff, matching what they charge on US imports.
The policy shift could impact Fiji’s two-way trade with the US, which was valued at $351.2 million in 2022.
Trump described the move as part of a broader effort to adjust trade relationships.
“We subsidise a lot of countries and keep them going and keep them in business,” he said. “We are finally putting America first.”
With Fiji’s economy still recovering from the pandemic and reliant on trade, businesses will now have to consider how the increased costs could affect exports to the US.
