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A rocky and remote British overseas territory in the south Atlantic with a population of less than 3,700 is among the ten nations facing the most punitive US tariff rates unveiled by Donald Trump.
The Falkland Islands’ exports to America — a category composed almost entirely of a succulent deep-sea fish — will face a 42 per cent levy from next week under Trump’s new tariffs, a development that has perplexed officials on the island.
“The tariffs came as a surprise, particularly as we as a country — the Falklands — have no tariffs on any goods from around the world, other than tobacco and alcohol,” said Roger Spink, a member of its legislative assembly who holds responsibility for government services, including its treasury.
He told the Financial Times on Thursday: “I think that’s basically based on the trade balance between the Falklands and the US — but we’re a very small country. Our sales to the US mainly are accounted for by toothfish.”
In 2023 the Falklands exported $27.4mn of goods to the US, including $26mn of non-fillet frozen fish, $601,000 of molluscs, and $224,000 of fish fillets, according to the Observatory of Economic Complexity.
By turns the US exported $329,000 of goods to the Falklands, spanning broadcasting equipment and chemical analysis instruments, the OEC found.
The Falklands was among 60 countries deemed by Washington to be the “worst offenders” for trade imbalances with the US and given specific punitive tariff rates over the universal 10 per cent baseline unveiled by Trump.
Only seven other countries on the list face a higher levy than the 42 per cent tariff that will be imposed on imports from the archipelago from next Wednesday, which Spink warned would have a “significant impact” on its fishing industry.
Trump’s tariff rates were calculated on the basis of the amount of goods each country sells to the US over what they buy in return, with a minimum 10 per cent applied to all nations regardless of their trading relationship.
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Nearby Argentina, which disputes the sovereignty of the islands it calls Islas Malvinas, only received the baseline 10 per cent US tariff, as did the UK. Argentina’s President Javier Milei is an ideological ally of Trump.
While the Falklands has an independent government and trade policy, as a British overseas territory it is “closely liaising with the UK government to see what approach we should take”, Spink said. British Overseas Territories are self-governing but rely on the UK for defence and foreign affairs.
The UK government in London, which has begun consulting businesses in Britain on possible retaliatory measures, did not immediately respond to a request for comment.
Spink added the islands would seek a reduction in the US tariff rate, but would also explore alternative markets for its toothfish, including in the Far East, its other key export destination.
The Patagonian toothfish, also known as the Chilean sea bass, boasts white, flaky, moist flesh and is prized by chefs for its versatility and Omega 3 fatty acids, according to the Marine Stewardship Council.
However, the Falklands’ sustainable fishing practices means that their fish product, which is MSC-certified, is sold at a premium price — potentially limiting other market opportunities, Spink said.
Determined to keep a cool head over Trump’s move, the politician admitted there was “disappointment” about the US tariff rate, but added: “Let’s find out what the full facts are before we start panicking in any way.”
