Fiji among big Pacific losers under Trump tariffs

Yahoo

03-04-2025

Fiji - and American lovers of high-end bottled water Fiji Water - stand as the big losers of US President Donald Trump's aggressive tariff play in the Pacific.
In the blue continent, some of the world's poorest economies are reeling after discovering they too will be subject to tariffs from the White House.
The US President unveiled global tariffs on imported goods on Thursday (AEDT), which he labelled "Liberation Day" for the American economy.
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— The White House (@WhiteHouse) April 2, 2025
Fiji has been levied at 32 per cent, Vanuatu at 23 per cent and Nauru at 30 per cent.
That will mean the favourite bottled water of many Americans - Fiji Water - should get a lot more expensive.
The US is Fiji's biggest goods export market, dominated by the country's eponymous branded water: roughly $A400 million worth of the bottled spring water headed across the Pacific in 2023.
Fiji Prime Minister Sitiveni Rabuka said the move was akin to a "trade blockade" that Fiji could not win.
"We cannot fight a war, a trade war particularly. We don't have anything to counter with. So we will have to weather the storm and roll the punches," he said, as reported by FBC.
Other Pacific nations - including Papua New Guinea, French Polynesia, Samoa, Tonga, Solomon Islands, Cook Islands, Kiribati and the Federated States of Micronesia - have been given a 10 per cent tariff.
For some countries, this will hurt more than others.
For instance, Tonga counts the US as its second-biggest export market, for Samoa, it is third, and Vanuatu, it is fifth.
However, Solomon Islands exports goods worth just $A1.75 million to the US in 2024, making it the 17th biggest export market and of little significance.
Vanuatu is not as exposed to the US economy as Fiji, but is another nation to be hit with a higher tariff rate, making its products less competitive.
Westpac analyst Justin Smirk said it was important to remember that the region's biggest export was not affected by the dramatic policy.
"Fiji's biggest export market is actually tourism. It's the most important revenue earner and these tariffs do not touch tourism," he told AAP.
We went to Washington DC to get the best possible result for New Zealand in the circumstances, by making strong, genuine, in-person connections with the US Administration. The purpose of our mission has been achieved. Indeed, New Zealand companies, who were fearing much worse,…
— Winston Peters (@NewZealandMFA) April 2, 2025
In New Zealand, Foreign Minister Winston Peters said the Kiwi rate of 10 per cent should be seen as a success from a recent diplomatic mission.
"We went to Washington DC to get the best possible result for New Zealand in the circumstances, by making strong, genuine, in-person connections with the US administration," he wrote on social media.
"The purpose of our mission has been achieved. Indeed, New Zealand companies, who were fearing much worse, are well positioned compared to exporters from other countries."
Prime Minister Chris Luxon said he was less concerned about the impact to Kiwi exporters than where the move may lead.
"Our exporters are deeply deeply competitive. The products and services we sell are in huge demand around the world," he said.
"The bigger worry will be the global impact and the wash-up of the tit-for-tat trade wars that may ensue."