The reciprocal tariffs imposed by the United States on nearly all countries around the world will create more opportunities for Maldives to export goods to the US, said Maldivian exporters.
The tariffs were announced 0by US President Donald Trump, who applied the universal 10 percent tariff, which is the lowest percentage, to the Maldives.
Shaafin Ahmed, CEO of Big Fish, Maldives's largest fish exporter to the United States, said the biggest competitors for provisional tuna exports to the United States are countries like Vietnam, the Philippines, Sri Lanka and Indonesia.
However, Vietnamese goods would now be subject to 46 percent tariffs while Sri Lankan goods would be subject to 44. Indonesian goods have a tariff percentage of 32 with the Philippines also getting hit with a 17 percent tariff.
Shaafin said Vietnam, which previously exported to the United States without any tariffs, would have to pay more than 40 percent in tariffs, making their good more costly to import into the US. However, Maldives would be able to continue exporting fish to the United States without much change in prices, he said.
“On average, we send about two or three containers of frozen tuna a month,” he said.
He said Big Fish alone would earn about USD two million a month by exporting fish to the United States.
Hussain Afeef, Commercial Director of Ensis, which exports raw fish from Maldives to the United States, said the company's exports of raw fish to the United States have declined significantly due to the lack of required size and quality of fish.
Despite the low tariff, he believes it would be difficult for Maldives to reap the most desirable benefits.
"The quality and size of exports to the US has declined significantly over the past five years. If we export the same sizes as in 2017, [we'll get] an advantage over countries like Sri Lanka. But this is not something to celebrate," he said.
Maldives' fish exports have fallen by 50 percent in the past two years. Although the US tariff has not changed, Maldives will only stand to benefit from increasing export volumes, exporters say.
According to customs figures, Maldives exported about USD four million worth of fish to the United States last year. These include black fin, yellow fin and sea cucumbers.