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February 4, 2025, 9:00 am
Business, Education, Fiji News, Politics

President Trump: How does his recent Tariff dealings affect us in Fiji

Fiji One News Team
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President Trump’s recent imposition of tariffs primarily targets countries such as China, Canada, and Mexico. While Fiji is not directly affected by these tariffs, the global economic repercussions could indirectly influence Fiji’s economy. For instance, the tariffs are expected to exacerbate the slowdown in global trade, a phenomenon referred to as “slowbalisation.”

Slowbalisation of trade, according to the IMF, is the happening in terms of value and volume of gross trade and also in terms of the importance of global value chains – in other words, the reduction in the exchange of intermediate goods between countries as a way to exploit comparative advantage and specialized gains.

According to the Oxford Economics Resource report, this deceleration in trade can lead to reduced demand for exports from smaller nations, including Fiji.

Additionally, the tariffs may disrupt global supply chains, leading companies to reevaluate and potentially restructure their sourcing and manufacturing strategies. Such shifts could have downstream effects on countries like ours, especially if they are part of these global supply networks.

Furthermore, the tariffs’ impact on major economies could lead to broader economic consequences, such as increased prices for consumer goods and potential reductions in global economic output. These changes might indirectly affect Fiji through fluctuations in tourism, foreign investment, and commodity prices.

In the end, while Fiji is not a direct target of President Trump’s tariffs, the broader global economic effects could have indirect implications for the Fijian economy.