by Ronald Toito’ona
The trade war between the United States (U.S) and China has intensified, with Beijing sounding a warning of strong countermeasures following fresh U.S. tariff threats.
However, Solomon Islands Prime Minister Jeremiah Manele says the direct impact on the country will be minimal — although indirect effects through affected development partners remain a concern.
Speaking at a press conference on Monday, Manele confirmed that the recent 10 percent U.S. tariff on imports will have limited effect on the Solomon Islands’ economy due to the country’s relatively small trade volume with the U.S.
“Trade between Solomon Islands and the United States is estimated at just USD$2 million to $5 million annually,” Manele said.
“I believe it mainly concerns kava exports to the U.S., so we may not feel the impact directly to a significant degree.”
However, he warned that the broader consequences of the U.S.-China tariff war could affect the Solomon Islands indirectly.
“Some of our development partners are facing much higher tariffs. That could affect their economic development and, in turn, their ability to support us,” Manele explained.
To understand the possible long-term implications, the Prime Minister has instructed the Economic Reform Unit (ERU), the Central Bank of Solomon Islands, and the Policy Evaluation team to conduct a detailed analysis.
Manele also plans to raise the issue during next week’s Pacific Islands Forum (PIF) Leaders’ Troika meeting in Fiji.
The meeting will include leaders from Tonga, Cook Islands, Fiji, and Solomon Islands.
In a related development, China’s Customs Commission announced it will impose a 34 percent tariff on all U.S. imports starting April 10.
The move is a direct response to what Beijing described as the U.S.’s “abuse of tariffs” and “economic bullying.”
A spokesperson for China’s Ministry of Foreign Affairs strongly condemned the U.S. decision, stating:
“America’s abuse of tariffs severely infringes on the legitimate rights and interests of other countries, violates WTO rules, and undermines global economic stability. China will not be intimidated. If the U.S. is determined to fight a trade war, China’s response will continue to the end.”
China’s Ministry of Commerce also announced it had filed a formal complaint with the World Trade Organization (WTO), accusing the U.S. of violating international trade laws by implementing “reciprocal tariffs.”
The WTO — made up of 164 member countries — is tasked with ensuring fair and open global trade through dispute resolution and enforcement of trade rules. China’s filing signals that it intends to use all available legal mechanisms to fight what it considers unjust actions by the U.S.
Tensions between the world’s two largest economies continue to rise, forcing smaller nations like the Solomon Islands to watch closely, concerned about potential ripple effects on their economic development and trade partnerships.