RECIPROCAL tariffs imposed by the United States are about to hit countries around the world including Fiji tomorrow. Or not, if what international trade experts say is anything to go by.
Fiji is facing a 32 per cent duty on goods exported into the US and as the deadline looms, it is understood the Fiji Government is nowhere near closing any deal with the world’s biggest economy, as negotiations for a trade framework with the US is still ongoing.
After its most recent meeting, Cabinet revealed that the two sides were working on an Agreement on Reciprocal Trade (ART) framework, a response to the new tariff measures imposed by US President Donald Trump in April, controversial in that it made no sense to economists.
“The Deputy Prime Minister and Minister for Trade is serving as Fiji’s Lead Minister for the US-Fiji ART negotiations, and the Permanent Secretary for Trade is Fiji’s chief negotiator at the officials’ level,” the latest Cabinet press release dated July 22, 2025 stated.
“The Ministry of Trade is the lead agency with the mandate to coordinate whole-of government consultations and represent Fiji in formal negotiations with the US.”
The Trade Ministry had offered no further detail when contacted by this newspaper yesterday, given the confidentiality surrounding the negotiations according to a top official at the Ministry.
It is understood however that the US under President Trump wants to dismantle both tariff and non-tariff barriers to trade when negotiating new deals, in order to end what it believes are “unfair” trade practices disadvantaging US industries.
The view has polarised opinions of economists, politicians, financial experts, business leaders and trade experts alike in the US and aroujnd the world, and has been blamed for the current unprecedented highly uncertain business and trade environment globally.
In a recent interview with this newspaper, US trade expert Steven Okun said he doubted the August 1 deadline would be implemented and labelled President Trump’s many deadlines “meaningless” and “made up”.
The US has been Fiji’s number one export destination, accounting for approximately 20 per cent of all goods exported, according to Deputy Prime Minister and Minister for Trade Manoa Kamikamica in his Ministerial Statement in Parliament in April on the impact of the US tariff on Fiji.
“In 2024, the total value of Fiji’s exports to the US stood at $439.08 million, while Fiji’s imports from the US amounted to $425.03 million, resulting in a trade surplus of $62.7 million for Fiji,” he said.
“Some of Fiji’s major exports to the US include bottled water, kava, fresh turmeric, cane sugar, seafood, fish, high-quality mahogany, and smaller quantities of various agricultural products such as taro, ginger, and a variety of value-added fast-moving consumer goods.
“A recent survey conducted by our Trade Commission North America, in response to the proposed new tariffs, found that for some of our businesses — particularly those in fresh turmeric, kava, ginger, and skincare — the United States represents 100 per cent of their total export market. In fact, around 70 per cent of our key exporters derive over 60 per cent of their revenue from the US market alone.
“These statistics emphasize just how critical the US market is to the success of Fijian exporters and, by extension, to the livelihood of thousands of Fijian families,” Mr Kamikamica said.
