'Fiji can manage' US trade tariffs: ANZ economist

ANZ Pacific economist Dr Kishti Sen says Fiji can increase its exports to the United States even after President Trump levied a revised 15 per cent tariff on Fijian goods.

Speaking to reporters on Tuesday during a briefing on Fiji's economic outlook, Dr Sen described the new tariff as "manageable" and said it wouldn't harm Fijian exports to the US market. The US initially levied a 32 per cent tariff on Fiji in April before reducing it to 15 per cent.

"Does it reduce Fiji's ability to export into the US market?" he said. "I don't think so. I think Fiji will be able to maintain those exports. If anything, it can increase.

"Every country is subject to at least the 10 per cent - there's no country that's given an exemption," Dr Sen added.

"At the end of the day, the consumers will be paying the tariff. Whether the full 15 per cent is passed on to the consumer is debatable. At this stage, the exporter could take a cut in their margins. The wholesaler, on the other hand, will take a cut in margin, and then the eventual price increase for the consumer is probably less than 15 per cent."

Dr Sen noted that if Fiji diversifies and produces more agricultural goods with high global demand, the US will still be an important market. What would differentiate Fiji from the competition would be its sought-after niche exports to the growing US market.

Fiji's major exports to the US include bottled water, kava, fresh turmeric, taro, and ginger.

"The US will be a market that they will be looking at, but it comes down to what is special about Fiji - the organic thing, which I think will support Fiji differently compared to some of the other competitors."

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