Cyprus anticipates that the direct impact of the trade tariffs effectively initiated by Donald Trump will be manageable, although the broader global economic consequences are expected to be severe, according to major international institutions.
Michalis Antoniou, Director General of the Cyprus Employers and Industrialists Federation (OEB), in an initial reaction to the imposition of the new tariffs, stated that Cyprus is not expected to experience significant direct repercussions. However, he added that the European Union and its major economies, which are already facing challenges, would be hit. “There will need to be a reorganisation of priorities there, and we will see how the EU will support these economies based on the new data,” he noted.
Antoniou acknowledged that there would undoubtedly be effects on stock markets and that some sectors would face competitiveness issues. Nevertheless, he pointed out that these decisions by the United States could lead to new trade alliances for Europe.
Concluding his remarks, Antoniou stressed that if a recession or slowdown occurs in the global economy, it would inevitably “touch” Cyprus as well.
The stricter tariffs, including a 34% levy on imports from China, have been implemented. The European Union faces tariffs of 20%, while high rates also apply to imports from Japan (24%), India (26%), and Switzerland (31%). Trump has also announced the imposition of 25% tariffs on all imported cars and parts.
Cypriot exports to the US
Analysis of the latest data from the Statistical Service of Cyprus for the period January to November 2024 shows that Cyprus exported goods worth €22,674,434 to the United States, with a net mass of 6,721,884 kilograms. Additionally, re-exports to the US during the same period amounted to €27,071,802.
While the United States is not among the top ten destinations for Cypriot exports, some difficulties for Cypriot businesses are anticipated, particularly if the US market is their primary export destination. Cyprus exports a diverse range of products, from halloumi and cheeses to animals and capers.
Specifically, 123 types of products exported to the US are affected by the tariffs. The most significant impact is expected to be felt by dairy producers, aquaculture businesses, and companies involved in the trade of electrical goods, communications equipment, juices, wines, virgin olive oil, coffee, cocoa, and even salt.
According to the Statistical Service data, dairy products, including halloumi, constitute the largest portion of Cypriot exports to the US, exceeding €6.4 million in value. Electrical goods, such as resistors, follow with a share of just over €3 million. Notably, these electrical goods are the top re-exported commodity from Cyprus, with a value exceeding €21 million. Extra virgin olive oil also ranks among the main exports.
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