VICTORIA, Seychelles — The trade war between the United States and China is escalating, and although Seychelles is far from the battleground, the ripple effects could still reach the island-nation’s shores. Since the start of the year, United States (US) President Donald Trump has imposed a series of tariffs — taxes on imported goods — on several countries, especially China. President Trump has defended these measures to protect American jobs, encourage the American market to consume more US-manufactured goods, and boost investment in the US. But these moves have sparked strong reactions from other countries, leading to rising tension and fears of global economic instability.
For Seychelles, the immediate concern is the impact on its tourism sector, which depends heavily on visitors from the United States, China, and Europe. Any slowdown in global travel, or a shift in consumer spending, could reduce arrivals in the months ahead. The local fishing industry, which exports a significant share of its catch to Asian markets, is also exposed to retaliatory tariffs. Officials at the Central Bank of Seychelles have warned that, while the direct impact on the domestic economy may be limited, the indirect effects — through trade volumes, shipping costs, and currency fluctuations — cannot be ignored.
Speaking to local media, economist Peter Kenrick noted that small island developing states such as Seychelles are particularly vulnerable to external shocks because of their narrow export base and reliance on imports for essential goods. “Even if our trade with the US and China is small in absolute terms, a global slowdown affects us through tourism, fuel prices, and the cost of imported food.” The government has said it is monitoring developments closely, and will work with international partners to mitigate any adverse effects. The Ministry of Finance is preparing a contingency plan to support affected sectors, should the trade war deepen in the coming months.
