US tariff on Fijian exports unfair and disproportionate – Prof. Prasad

The imposition of a 32 percent across the board tariff on Fijian exports into the US is quite disproportionate and unfair, and 96 percent of what the United States exports to Fiji attracts either zero duty or just 5 percent.

This has been highlighted by Deputy Prime Minister and Minister for Finance Professor Biman Prasad as US President Donald Trump has announced a 32 percent tariff on Fijian exports into the US as “reciprocal tariff” rates that more than 180 countries and territories will face under his sweeping new trade policy.

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 they are still trying to get more details on the exact rationale and application of the newly announced retaliatory tariff and will work with key stakeholders and US counterparts to get this resolved.

The Deputy Prime Minister says of 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.

Professor Prasad further says the US is an important trade partner for Fiji, accounting for around 10 percent of total trade (exports and imports).

He says the US is also an important source market for Fiji’s tourism (10 percent), remittances inflows (about 30 percent) and a key development partner for the last many decades.

Professor Prasad 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.

He says the trade surplus was $293 million in 2022 and declined to $63 million last year.

He says Fiji’s major exports to the US includes mineral water, kava, fish products, sugar confectionery and wood artifacts while major imports from the US includes, medical equipment’s, aircraft parts, machinery and electrical equipment.