The United States has imposed a new package of 10 percent tariffs on imports from all countries, which came into effect on February 24. According to a report published on February 26 by the European Bank for Reconstruction and Development (EBRD), Kosovo ranks among the countries most affected by these fees in the region where this bank operates.
According to the EBRD, US import tariffs on countries in the region have increased by an average of 0.3 percentage points, with 29 countries now facing higher tariffs. The largest increases were recorded in Armenia, Egypt, Kenya, Kosovo and Ukraine.
“The tariff increase for Armenia, Egypt, Kenya, Kosovo and Ukraine ranges from +3.7 to +4.8 percentage points,” the report says.
Meanwhile, several other countries in the region, such as Bosnia and Herzegovina and Serbia, as well as Moldova and Tunisia, are considered relative beneficiaries of the recent tariff changes as tariffs on them have either increased much less or have remained almost at the same level.
The report highlights that, on average, US import tariffs for countries where the EBRD operates have increased from 14.6 to 15 percent, increasing pressure on exporters, including those from Kosovo.
However, the report notes that the tariffs have had less of an effect than expected.
On February 20, the US Supreme Court struck down Trump’s global tariffs except for those on steel, aluminium, timber and autos, arguing that the Emergency Economic Powers Act does not allow the president to impose such tariffs. The US president then vowed to impose new tariffs of 15 per cent. But he ultimately decided to replace the 10 per cent tariff with a new one of the same amount – this time under Section 122 of the Trade Act of 1974, which allows the president to impose such a tariff for 150 days without congressional approval.
According to Kosovo Customs data, in 2019, goods worth three million euros were exported to the US, while three years later (2022) this figure increased to over 131 million euros.
Products that Kosovo exports to the US include food, beverages, textiles, mattresses, but also wood and plastic products.