US tariffs: Some Pacific nations get relief, others face increase

Source: RNZ PacificPago Pago, AMERICAN SAMOA — Pacific Islands still face tariffs from the United States, but some rates are lower than originally announced in April. The White House announced last week that the "universal" tariff for goods coming into the US will remain at 10 percent the same level that was implemented on April 2 before the pause. But that 10 percent rate will apply only to countries with which the US has a trade surplus — countries to which the US exports more than it imports. That applies to most countries, a senior administration official said. A 15 percent rate will serve as the new tariff floor for countries with which the America has a trade deficit. About 40 countries will pay that new 15 per cent tariff. The tariff in Fiji has more than halved — from 32 percent to 15 percent. Fiji's trade ministry welcomed the drop from 32 percent to 15 per cent. Deputy Prime Minister and Minister for Trade Manoa Kamikamica said the reduction offers welcome relief to Fiji's exporters and helps preserve their competitiveness in the US market — but it's not the end of the road yet. "The 15 percent tariff is not the end of the journey. As referred to in the [US] executive order of 1 August 2025, Fiji is designated as a country in ongoing negotiations with the United States," he said in a statement. The reduced tariff rate will take effect from 8 August, applying to all goods of Fijian origin unless excluded under specific provisions. "We remain committed to advancing these discussions in good faith. Our ultimate goal is to significantly reduce the 15 per cent tariff," Kamikamica said. The Fijian government said the country accounts for less than 0.0001 per cent of total US imports, "posing no discernible threat to US industry." Vanuatu's tariffs have been dropped from 22 per cent to 15, and Nauru's from 30 per cent also to 15. However, Papua New Guinea has seen an increase from 10 to 15 percent, while New Zealand has also been given the 15 percent tariff. Speaking to RNZ's Morning Report, Prime Minister Christopher Luxon said the tariff, which had been expected to be at 10 percent, being at a higher percentage “was not what New Zealand wanted.” Top diplomat Vangelis Vitalis was flying to Washington in the wake of the announcement, with Trade Minister Todd McClay intending to visit in coming days too. Despite the higher tariff, Luxon said the government had "played it well". "We continue to register our disappointment about the decision; we've also done it since April." He believed New Zealand exporters were "nimble and agile" and there was still huge demand for New Zealand products and services globally. The opposition said the 15 percent tariff was a "slap in the face" for exporters. Section: RegionalTags: tariffs View the discussion thread.

8/4/2025 8:35:23 PM

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US tariffs: Some Pacific nations get relief, others face increase

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