RESPONSE TO THE RECENT RECIPROCAL TARIFF ANNOUNCED BY THE UNITED STATES OF AMERICA

03/04/2025

The Ministry of Trade, Co-operatives, Micro, Small and Medium Enterprises, and Communications notes with great concern the recent tariff measures announced by the United States, which include a 32% tariff on Fijian exports.

These tariffs are expected to go into effect with a 10% baseline tariff on all countries effective 5 April 2025 at 12:01 a.m. EDT. All countries with individual higher reciprocal tariffs, including Fiji, will take effect on 9 April 2025 at 12:01 a.m. EDT.

While the United States remains one of Fiji’s key trading partners, these new trade restrictions pose a significant threat to Fijian industries and businesses that export to the United States.

In response, the Fiji Government is actively engaging with U.S. Government counterparts through diplomatic and trade channels to seek clarity on these measures and explore options to mitigate their impact. This includes understanding how the 63% “Tariff Charged to the U.S., including Currency Manipulation and Trade Barriers” was calculated by the U.S. Government.

As summarised in Table 1 below, Fiji imposes less than 2% import duties on average on all U.S. imports.

This reciprocal tariff will have a direct negative effect on Fiji’s resource owners, rural population, and smallholder farmers that benefit from Fiji’s exports to the U.S. Fiji’s exports are primary products such as fish and agricultural products, including kava, turmeric, and ginger that do not compete with U.S. industries but rather complement them.

Removing these tariffs would allow American businesses and consumers continued access to high-quality, sustainably sourced natural Fijian products that do not interfere with U.S.-grown and -manufactured products.