The 10 percent tariff imposed by the United States (US) on all countries are expected to have minimal impact on the Solomon Islands.
Prime Minister (PM) Jeremiah Manele confirmed this during a press conference at the Office of Prime Minister and Cabinet (OPMC), Monday.
He explained that trade between the Solomon Islands and the United States is relatively small, amounting to between USD $2 million and $5 million annually.
“I believe it mainly concerns kava exports to the US,” the Prime Minister said.
“So we may not feel the impact directly to a significant degree. However, we are likely to feel the indirect effects, as some of our development partners are facing much higher tariffs.
“That could affect their economic development and, in turn, their ability to support us.”
PM Manele said he has tasked his office to consult with the Economic Reform Unit (ERU) of the Ministry of Finance and Treasury, the Central Bank of Solomon Islands, and the Policy Evaluation team to conduct a more detailed analysis of the issue and its potential impact on the local economy.
Additionally, the Prime Minister stated that he plans to raise the issue when he attends the Pacific Islands Forum (PIF) Leaders’ Troika meeting in Fiji next week.
The Troika includes Tonga Prime Minister Hu’akavameiliku Siaosi Sovaleni, Cook Islands Prime Minister Mark Brown, Solomon Islands Prime Minister Jeremiah Manele, and Fiji Prime Minister Sitiveni Rabuka.
In a related development, China is set to impose an additional 34 percent tariff on all products imported from the United States starting April 10, according to an announcement from the Customs Commission of the State Council.
The announcement, issued on Friday, April 4, follows the US decision to implement “reciprocal tariffs” on Chinese exports.
The Chinese commission criticized the move, saying it violates international trade rules, undermines China’s legitimate rights and interests, and represents unilateral bullying, according to a report by China Daily.
The US had earlier imposed a 10 percent reciprocal tariff on exports from the Solomon Islands as well.
In response to the escalating trade tensions, China has filed a lawsuit through the World Trade Organization (WTO) dispute settlement mechanism.
A spokesperson from China’s Ministry of Commerce stated, “By imposing so-called ‘reciprocal tariffs,’ the United States gravely violates WTO rules, undermines the legitimate rights and interests of WTO members, and damages the rules-based multilateral trading system and the international economic order.”
The WTO, which comprises 164 member countries, provides a comprehensive framework of trade rules designed to reduce trade barriers, prevent discrimination, and resolve disputes — all aimed at promoting free, fair, and predictable global trade.
By Eddie Osifelo
Solomon Star, Honiara
