Political reporter
The Falkland Islands was surprised to be hit by one of the most punishing tariff rates on US President Donald Trump’s “worst offenders” list, a member of the Falklands parliament has told the BBC.
The British overseas territory is facing a 42% tax on the goods it exports to the US under Trump’s shake-up of international trade.
Teslyn Barkman, who oversees trade in the parliament, said the taxes would impact the economy, which is heavily dependent on the sale of fish to the EU and the US.
But Barkman said the Falklands government would not respond with retaliatory tariffs and wanted a “warm” relationship with the US.
Only eight other countries or territories dubbed the “worst offenders” for trade imbalances were given higher rates on Trump’s list of tariffs, which are due to come into effect on Wednesday.
“It was a surprise,” Barkman told the BBC. “The fact a global superpower such as the US was paying attention to us at all caught us off guard.”
With a population of about 3,600 people, the Falkland Islands is an archipelago located in the South Atlantic Ocean.
The territory has a government and sets its own trade policy, while the UK takes responsibility for its defence and foreign affairs.
In 2023, the Falklands government reported a national income of £280m, with fishing accounting for 60% of gross domestic product (GDP).
“We’re a village running a country,” said Barkman, who holds responsibility for trade and economic development in the Legislative Assembly.
“So the sum of our trade exports is massive in terms of GDP.”
In 2023, the Falklands exported $27.4m (£21.2m) of goods to the US, mostly non-fillet frozen fish, according to the Observatory of Economic Complexity (OEC).
In contrast, the OEC said the US exported $329,000 (£255,000) of goods to the Falklands.
Liberal Democrat leader Sir Ed Davey has urged Prime Minister Sir Keir Starmer to urgently meet Falklands Governor Alison Blake to discuss the impact of the tariffs.
Sir Ed said the UK must include the interests of the Falkland Islands in its trade negotiations with the US.
“Trump’s trade war could be the biggest threat facing Falklanders since Argentina’s invasion,” Sir Ed said.
“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.”
Barkman said the Falklands was still trying to figure out why Trump decided to levy a 42% tariff on its goods. The US imposed a 10% tariff on UK products.
As analysis by BBC Verify showed, the tariffs are based on a calculation that factors in the difference in goods traded between the US and other countries.
“We’re certainly not looking at any anything retaliatory at all,” Barkman said.
“We need to understand how that figure was arrived at because certainly the Falkland Islands approach has been that we’re here to support the UK and her Western allies.
She added: “We want a warm relationship with the US as well.”
She said tourism was also a big contributor to the territory’s economy, with large numbers of Amercians coming to see the renowned penguins living on the Falklands.
“Maybe that’s an opportunity for us to build a closer relationship,” Barkman said.
She said the Falklands was working with the UK government to understand how the US tariff could be reduced or removed.
EU tariffs on fish from the Falklands is a similarly pressing issue, given that’s where the vast majority of those exports go.
“We’re very aware that the EU and the UK are approaching reset talks and there might be an opportunity there to support our economy as well and the removal of EU tariffs against Falkland Islands products,” Barkman said.
The BBC understands Foreign Office Minister Stephen Doughty spoke with a member of the Falkland Islands Legislative Assembly on Thursday and will be engaging with affected overseas territories over the coming weeks.
