The United States implemented an additional 10% customs tariff on April 5 on most products imported into the country from around the world.
“How much do we import from the United States? How much do we export to the US? It does not affect us directly,” stated Xanana Gusmão to reporters after his weekly meeting with the President of Timor-Leste, José Ramos-Horta, at the Presidential Palace.
According to data from Timor-Leste’s Trade Information Portal, in 2023, coffee accounted for 85.6% of US imports from the country, with a trade value of approximately four million dollars.
Conversely, Timor-Leste primarily imports chicken meat from the United States, with a trade value of about 14 million dollars.
Speaking to journalists, Xanana Gusmão expressed more concern over the dollar, which is also the official currency in Timor-Leste.
“If the dollar rises, we are happy; if the dollar falls, that’s when we need to tighten our belts,” Xanana Gusmão explained.
The Prime Minister gave an example of imports from Indonesia, where the dollar is valued at 17,000 Indonesian rupiahs.
“With a strong dollar, the prices of goods purchased from that country become cheaper, which is positive since dollars are used to acquire these products,” he told reporters.
Therefore, concerning the implications of the US tariff, the impact on Timor-Leste is limited to dollar exchange rate fluctuations.
The President of Timor-Leste, José Ramos-Horta, also mentioned on Wednesday that the impact of the decision would be minimal.
