Surangel Whipps Jr.
KOROR (Island Times/Pacnews) — Palau President Surangel Whipps Jr. said Palau must brace for the economic impact of global trade tensions but avoid reactionary responses, especially when it comes to investments and cost-of-living challenges.
“We must act based on a long-term plan, not reactionary,” Whipps said, referring to the global tariff war and increasing protectionist trade policies.
While acknowledging that Palau will be affected — particularly in terms of market investments and consumer prices — Whipps emphasized the importance of economic resilience.
“We’re seeing changes in the global economy — countries are becoming protectionist,” he said. “What that means for us is potentially importing less from the United States. But since we don’t have tariffs with countries like China or the Philippines, we may see cheaper goods coming from there. That’s a loss for the U.S. and a gain for others.”
Despite the uncertainty, Whipps believes Palau’s consumers will continue seeking affordable options, whether from the U.S., Japan, or other trading partners. To cushion the impact, he pointed to several domestic initiatives aimed at increasing household incomes and improving economic stability.
“We’ve already raised the minimum wage,” he said. “In October, government employees will receive a 10% salary increase. We’ve also expanded social programs, including a $480 benefit for senior citizens and child subsidies. These measures help address the rising cost of living.”
Whipps stressed that Palau’s approach must focus inward and prioritize its people.
“We can’t control what President Donald Trump does,” he said. “But we can focus on our own economy and how we support our people. That includes not only diversifying our tourism industry but also diversifying trade.”
He concluded by reinforcing his belief in the power of the free market to adapt.
“The free market will always find the cheapest goods,” Whipps said. “Our job is to make sure our people can afford what they need,” he added.