PRIME Minister Sitiveni Rabuka says Fiji did not foresee the imposition of 32 per cent of tariffs from the US.
Responding to the news that sent shockwaves through global economies, Mr Rabuka said a lot of tough decisions were now in order.
“No, we did not see it coming; now that it has come, we have to make a lot of very, very tough decisions on how we trade, particularly who we trade with,” he said.
“The world is bigger than the United States, so we will have to look at new sources of imports and new markets for our exports. So, we’re fortunate that we have a lot of friendly nations around the world that will trade with us.”
When asked whether this could spark a global trade war, and whether Fiji was ready for such an outcome, Mr Rabuka said Fiji could not fight a trade war.
“We cannot call it a trade war. We can just call it a trade blockade. For Fiji, we cannot fight a war, a trade war, particularly.
“We don’t have anything to counter with so we will have to weather the storm and roll with the punches.”
He has asked local businesses trading with the US to not be discouraged.
“There are other markets out there and the world. Fiji Government will spare no effort in going out and getting those markets established or re-established.”
Mr Rabuka also said there was room for negotiation; however, they had to present their case to the US very smartly.
“There will always be room for negotiation. At the moment, we’re taking it on the chin right now.
“We have to work out whether we get up at the count of six, or count of eight, or stay down. It’s not being knocked down; it’s staying down that makes you lose.
“So, we will try and get up and look at all avenues available to us to continue and trade.”
In a statement yesterday, the Ministry of Finance said the tariffs were “disproportionate and unfair” but added that the US was an important trade partner for Fiji, accounting for around 10 per cent of total export and import trade.
The ministry said Fiji had a trade surplus with the US as exports to the US were just below $500million for the past three years while imports grew from $190m in 2022 to $425m in 2024.
“The trade surplus was $293m in 2022 and declined to $63m last year,” the ministry said.
“Fiji’s major exports to the US includes mineral water, kava, fish products, sugar confectionery and wood artefacts. Major imports from the US includes, medical equipment, aircraft parts, machinery and electrical equipment.”
The ministry said it was trying to get more details on the exact rationale and application of the newly announced retaliatory tariff by the US.