Aerial shot of Suva Port. [File Photo]

Fiji is facing a major blow to its trade relations with the United States after a new 32 percent tariff was imposed on Fijian exports.

Deputy Prime Minister and Minister of Finance Professor Biman Prasad has condemned the decision and described it as “disproportionate and unfair.”

He pointed out the longstanding economic ties between the two countries.

The United States, he states is a partner for Fiji, accounting for 10 percent of the country’s total trade.

Beyond goods, he also pointed out that the US plays a central role in Fijian tourism and provides around 30 percent of Fiji’s remittances.

For years, he explained that the US has been a development partner, helping to sustain the Fijian economy.

Fiji’s trade, Professor Prasad said with the US has long been marked by a surplus, with annual exports reaching nearly $500 million over the past three years.

However, that surplus has sharply declined.

Prof Prasad said that imports from the US surged from $190 million in 2022 to $425 million in 2024, and Fiji’s trade surplus fell from $293 million in 2022 to just $63 million last year.

Fiji’s top exports to the US include mineral water, kava, fish products, and wood artifacts, while the US supplies Fiji with medical equipment, aircraft parts, and machinery.

Despite the growing imbalance, the Minister said that Fijian exports face a steep new tariff, while 96 percent of US imports into Fiji remain either duty-free or subject to minimal tariffs.

Prof Prasad stressed that the tariff is an unjust burden on Fijian businesses and is not justified by the current trade dynamics.

The government, he says is seeking further clarity on the reasons behind the tariff hike and intends to engage with both US stakeholders and international trade partners to resolve the issue.

This tariff imposition, Prof Prasad believes risks straining the relationship between Fiji and its crucial trade partner at a time when economic pressures are already mounting.

The outcome of this dispute, he added could have lasting effects on both countries economic future.

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