Fiji hit with 15% US trade tariff

ANZ Pacific economist Kishti Sen says Fijian exporters can be pleased about the 15 per cent tariff from the United States.

Fiji will face a new 15 per cent "reciprocal" US trade tariff come August 8, down from the 32 per cent announced back in April.

Mr Sen said the lower surcharge means lesser disruptions to exports into the US from Fiji. 

"All things considered, I believe Fijian exporters would be relatively pleased that the new tariff is set at the lower end of the spectrum at 15 per cent," he added.

"It is 53 per cent lower than the 32 per cent that President Trump announced on April 2 .Of course, exporters don’t pay tariff, importers do.

"Fiji’s exports to the US were on an upward curve prior to the 15 per cent reciprocal tariff announcement early in the year and the new 15 per cent levy won’t upset the apple cart in terms of goods exports to the US in my view."

Some Pacific countries saw their tariff maintained or reduced, such as Vanuatu with 15 per cent versus the initial reciprocal tariff of 22 per cent. 

Others like Papua New Guinea and New Zealand had their tariff rates raised to 15 per cent from the baseline 10 per cent. 

Fiji's Deputy Prime Minister and Minister for Trade, Manoa Kamikamica welcomed the tariff reduction, but said talks would continue to secure a better deal for Fijian exports, including a 'zero list' of Fijian goods that may qualify for 0 per cent tariffs. 

"It is also a positive step in deepening our bilateral trade ties with the U.S," he said.

"Fiji remains committed to securing even better outcomes for its exporters and ensuring that Fijian products are competitive, visible, and accessible in the U.S. market."

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