Fiji hit with 15 percent US tariff

Fiji is now facing a 15 percent tariff on goods exported to the United States after President Donald Trump’s 1 August deadline for finalising trade deals expired.

The tariffs mean companies that export goods to the US will have to pay the taxes to the US government, and experts say these companies may pass costs on to consumers.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad had earlier confirmed that 96 percent of what the United States exports to Fiji attracts either zero duty or just 5 percent.

According to the charts shared by Trump and the White House, Fiji charges the US 63 percent tariffs – including currency manipulation and trade barriers.

This 63 percent tariff claim is incorrect as Fiji does not have that level of tariff for any goods or country.

Professor Prasad says the total value of imports from the US last year, 72 percent were at zero import duty, 25 percent imports at 5 percent, and less than 4 percent imports at 15 percent and 32 percent.

He says Fiji has had a trade surplus with the US where our exports to the US were just below $500 million for the past 3 years while imports grew from $190 million in 2022 to $425 million in 2024.

Trump had initially imposed a 32 percent tariff but a 90 day extension was given for trade talks.

The new tariffs will come into effect on 7 August, except for Canada's 35 percent rate, which has already started.

Source: BBC