FIJI’S exports will continue to find a home in the United States despite the 32per cent import tariff slapped on Fiji goods by US President Donald Trump yesterday.
And while noting the aggressiveness of the latest raft of tariffs from the world’s biggest economy and surprise that Fiji has been targeted, ANZ international economist Kishti Sen said Fiji is more likely to feel the impact of slow global growth from the tariffs than a complete halt of Fijian exports into the US due to the tariffs.
“I don’t believe these reciprocal tariffs will stop or hinder Fijian exports into the US market,” Mr Sen told The Fiji Times.
“Fiji’s exports will continue to find a home in the US markets as its products are niche and sought after.
“And President Trump says he will reduce the inflationary impact on households by giving people tax cuts.
“The bigger question is what President Trump’s trade sanctions will do for global growth and whether countries hit with his new tariffs will come back with their own tariffs.
“Some countries including Australia have ruled out a ‘tit-for-tat’ trade-war scenario.
“Trump’s sweeping tariffs though does raise the risk of a slower global growth. If that materialises, that’s where Fiji will feel some of the impact through reduced tourism inbound demand,” Mr Sen said.
The US is number one on the list of top five destinations for Fijian exports according to data from the Fiji Bureau of Statistics (FBOS).
Last year, $439.1m worth of Fijian goods entered the US market, mainly mineral water, other ginger and other alcoholic preparations, according to FBOS.
Exporters of these products to the US, famously FIJI WATER, are now braced for the new tariff, which comes into effect on April 9.
“We are obviously focused on today’s announcement and evaluating its potential impact and exploring options,” a company spokesperson told The Fiji Times. “We remain committed to delivering
FIJI Water to customers and to maintaining strong trade relations.”
With Fiji’s major trade partners and source of tourists Australia and New Zealand also on President Trump’s tariff list, it’s still early days to gauge the full brunt of the monumental tariff shift.
“There will be some impact felt and these are more likely to be industry specific rather than an across the board impact that sees the Australian and New Zealand economy slowing materially,” Mr Sen said.
“Everything will stem from the global economy impact which is too early to assess fully.
“That said, both central banks can cut rates in a hurry to stimulate activity should demand start to slow significantly.”
Note: This article was first published on the print version of the Fiji Times dated April 4, 2025.
