In response to the tariffs imposed by the United States under President Trump, Fijian Prime Minister Sitiveni Rabuka has urged a measured approach, advising businesses and the nation to "bide your time... roll with the punches". Rabuka's government, like many others, was caught off guard by the sudden implementation of these tariffs.

The tariffs, which include a base rate of 10% on all foreign imports and higher rates ranging from 20% to 50% for countries deemed to have major tariffs on U.S. goods, have sparked concerns about potential disruptions to Pacific economies and trade relationships. Fiji, in particular, faces a 32% tariff on its exports to the U.S., a figure close to the 34% imposed on China.

Rabuka's strategy involves several key elements:

• Seeking Clarification and Mitigation: The Fijian government is actively engaging with its U.S. counterparts through diplomatic and trade channels to gain a clearer understanding of the measures and explore options to lessen their impact. They are particularly interested in understanding how the Trump administration calculated the 63% tariff it says Fiji charges on U.S. goods, considering that Fiji imposes import duties of less than 2% on average on all U.S. imports.
• Diversifying Trade Partners: Recognizing that "the world is bigger than the United States," Rabuka is encouraging businesses to seek new sources of imports and new markets for exports. He has assured local businesses that the government will spare no effort in establishing or re-establishing these markets.
• Regional Cooperation: Rabuka is advocating for a collective solution, working with Pacific leaders and countries like New Zealand to develop a joint plan to address the tariffs. He has also raised the possibility of individual talks with U.S. leaders, emphasizing that such meetings must follow proper channels and Cabinet approval.
• Maintaining Stability: Rabuka has emphasized the importance of maintaining stability in the Pacific region, asking that larger powers refrain from bringing their conflicts into the area and coercing island nations into their camps.

Fiji exports mineral water, kava, fish, sugar confectionery, and wood artifacts to the U.S., and imports vital goods like medical equipment, aircraft parts, and machinery. The tariffs threaten to make Fijian products less competitive in the U.S. market, potentially harming local industries.

Prime Minister Rabuka has acknowledged India's growing influence and the need for stability in the Indo-Pacific region. He has also stated that Fiji would not welcome a Chinese military base in the Pacific, reinforcing Fiji's commitment to maintaining regional stability.

Despite his support for Trump, Rabuka has admitted that his government was unprepared for the tariffs. He hopes that existing agreements and programs with the U.S., such as the Bilateral Framework for Technical and Economic Cooperation Agreement and the USAID regional office in Suva, will not be hampered by the tariffs.

Facing these challenges, Rabuka's approach focuses on resilience, diversification, and regional collaboration to weather the storm and protect Fiji's economic interests.