Regional implications of U.S tariff a concern, says BSP

The recently announced United States Government tariffs on Papua New Guinea is limited, however the broader regional implications are more concerning.

BSP Group CEO Mark Robinson when commenting on the recent developments affecting the Pacific region said that while the newly announced U.S. tariffs have limited direct impact on PNG, the broader regional implications are a cause for concern.

“The United States is not a major trading partner for PNG, with our exports, primarily coffee, cocoa, and vanilla, relatively modest in scale.

“However, the blanket 10% reciprocal tariff imposed on most Pacific nations, including PNG, and even higher rates, such as 32% for Fiji and 23% for Vanuatu, introduce uncertainty. These are key markets for BSP, and any disruption in trade flows could have meaningful economic consequences,” Mr. Robinson said.

He added that while Palau and Niue have been exempted and a 90-day grace period has been granted, the greater risk lies in indirect effects on major regional partners such as Australia and China, which face more significant tariff exposure.

Mr. Robinson further emphasised BSP’s commitment to financial inclusion across the region.

“BSP is deeply embedded in the South Pacific, operating in seven countries. We take our role in promoting financial inclusion and literacy very seriously. In PNG, we recently launched the Wantok Wallet, a new solution that provides access to financial services without requiring a traditional bank account. Over 40,000 Wantok Wallets were activated in the first quarter of 2025 alone.”