SUVA (FBC News/Pacnews) — Fiji’s Deputy Prime Minister and Minister for Finance Professor Biman Prasad said the direct short-term impact of U.S. tariffs on Fiji is unlikely to be significant.
Prasad highlights trade with the U.S. accounts for only 5% of Fiji’s GDP, making it a relatively small portion.
He said the main export commodities to the U.S. are Fiji Water, ginger, dalo, and kava and are not expected to be heavily affected.
However, Prasad said they are aware of the uncertainties around changing tariffs, which could impact the global economy.
He said if there’s a slowdown, it could affect remittances, tourism, and spending power, particularly if high tariffs raise the cost of living in the U.S. This, in turn, may impact tourism, which is something they are closely analyzing.
Prasad reassures that there is no cause for alarm in the short term, as our economy is strong, with positive growth in 2024 and inflation down to 1.4% in March, compared to 4.6% last year.
“This means that the effect of any other tax in the 2023-2024 budget has now dissipated. We knew that the focused approach of providing zero VAT on 22 basic food items would have a positive impact. On top of that, our income policy, our wages policy, and our support for farmers and families — whether through social welfare or back-to-school support — are all adding additional income to households.”
He said to address future concerns, they are focusing on increasing the income of the people.
