Donald Trump has moved from threats to action by imposing new tariffs on Canada and Mexico, with China and the European Union next in line, officially marking the beginning of a trade war.
Whilst Cyprus’s economy is unlikely to face a significant direct impact, some businesses exporting to the US could encounter difficulties if Trump follows through with his threat to impose 25% tariffs on European goods.
According to the Statistical Service of Cyprus, the island exported products worth €22,674,434 to the United States from January to November 2024, with re-exports valued at an additional €27,071,802.
Michalis Antoniou, Director General of the Employers and Industrialists Federation (OEB) said that the Cypriot economy will not be directly affected by the tariffs that Donald Trump is expected to impose on the European Union. However, he noted some Cypriot businesses with US trade links would feel the effects.
The dairy sector—including halloumi cheese—represents the largest portion of Cypriot exports to the US, valued at over €6.4 million. Electrical products such as resistors follow at approximately €3 million, whilst extra virgin olive oil also features prominently.
Antoniou identified the climate of uncertainty created by the American President’s decisions as particularly concerning, potentially disrupting trade relations between countries and posing risks to the Cypriot economy when combined with armed conflicts and geopolitical developments in the region.
A total of 123 types of products exported to the US could be affected by the tariffs, with cheese producers, fish farms, and companies trading in electrical products, communications, juices, wines, virgin olive oil, coffee, cocoa and even salt likely to experience the greatest impact.
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