Business

Low trade volume protects Fiji from US tariff threat

February 5, 2025 6:35 am

Given its relatively small size, Fiji will likely be spared from higher US tariffs.

ANZ Senior International Economist Kishti Sen states that Fiji’s trade surplus with the US has been constant, at around $100m, for several years.

Its main imports from the US are aircraft and aircraft parts, hence the volatility in imports.

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ANZ Senior International Economist Kishti Sen [File Photo]

Bottled water accounts for 85% of exports to the US, with processed fish, perfumery plants, and kava the other main exports.

Sen says overall, the value and volumes are almost negligible compared to the US’s major trading partners often accused by President Donald Trump as “not paying their fair share” or of taking advantage.

He states that Trump’s tariff focus is likely to be on China and Canada/Mexico, and to a lesser extent, the EU and other allies such as Japan and South Korea.

According to Sen, it will be interesting to see if he also targets economies like Vietnam or others in the Association of South-East Asian Nations as the manufacturing supply chains shift.

Over the weekend, Trump announced 25 percent tariffs on goods from Canada and Mexico on the basis that these countries had not done enough to stem the flow of illegal immigrants and the drug fentanyl.

He also announced a 10 percent tariff on imports from China.

However, overnight, he delayed the imposition of tariffs on Canada and Mexico by at least 30 days.