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The Falklands Islands, a British Overseas Territory in the South Atlantic may have survived an attempted invasion by Argentina in 1982, when a British naval flotilla came to the rescue, but now it is under economic attack by an even bigger enemy.
The United States of America.
The Falkland Islands were shocked yesterday to find themselves hit with a high US tariff under President Donald Trump’s new trade rules. The US is placing a 42% tax on goods from the Falklands, which mostly exports frozen fish to the US and the EU. This move came as a surprise to the islands’ small government, which oversees trade but relies on the UK for defense and foreign affairs.
Teslyn Barkman, a member of the Falklands Legislative Assembly, said the US is one of the islands’ biggest markets and this tariff could hurt the local economy.
Fishing makes up about 60% of the territory’s income, and in 2023, it exported over $27 million in goods to the US. In contrast, the US only sent about $329,000 worth of goods to the Falklands.
Because of this proportional imbalance in trade, small though it is, the Falklands were labeled one of the “worst offenders” on Trump’s list, with only eight places facing worse tariffs. Barkman said the islands don’t plan to respond with any kind of retaliation. Instead, they want to maintain a good relationship with the US.
Barkman said no one knows exactly why the US chose such a high tariff rate, especially when the Falklands are supportive of the UK and its allies. She hopes tourism—especially from American visitors who come to see penguins—can help build stronger ties with the US.
UK politician Sir Ed Davy said: “Trump’s trade war could be the biggest threat facing Falklanders since Argentina’s invasion. The UK government has a responsibility to step up and defend British citizens everywhere – including in the Falklands. President Trump has arbitrarily decided to hit Falklanders with some of his highest tariffs in an outrageous act of aggression that cannot be allowed to stand.”
The islands are working with the UK government to try to reduce or remove the US tariff. They are also hoping EU tariffs on Falklands fish will be lowered as part of new talks between the EU and the UK.
The UK’s Foreign Office is in contact with the Falklands and says it will keep working with affected overseas territories.
Sources: BBC. MercoPress, Financial Times.
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