Croatia hit by new US Trump tariffs
- by croatiaweek
- in Business
Donald Trump
US President Donald Trump has announced new universal tariffs on all imports into the United States, including those from the European Union.
The move could have serious consequences for European exporters, including Croatia.
From 5 April, a 10% tariff will apply to all imports into the US, with additional tariffs on goods from countries with the largest trade deficits with America.
For example, Chinese imports will now face an extra 34% tariff, Japanese goods 24%, and EU products 20%.
European Commission President Ursula von der Leyen has expressed deep regret over the decision and confirmed that the EU is already preparing countermeasures.
How Will This Affect Croatia?
As part of the EU, Croatia will also feel the effects of these tariffs. According to the Croatian Bureau of Statistics, Croatia exported goods worth €658 million to the US in the first ten months of 2024.
This accounts for 3.3% of total Croatian exports, making the US the country’s eighth most important export market.
Croatia’s main exports to the US include:
• Pharmaceutical products (€244 million)
• Electrical machinery and equipment (€143 million)
• Weapons and ammunition (€80 million)
Economic expert Dr Marijana Ivanov warns that these tariffs could trigger a chain reaction, 24sata writes.
As European countries struggle with higher tariffs, they may put pressure on Croatian manufacturers to lower prices to remain competitive in the US market
Rising Prices and Inflation?
Economic analyst Damir Novotny believes that the new tariffs could lead to inflation. The increased costs will likely result in higher prices for some products in the US, while the EU may respond with counter-tariffs.
“The EU imports liquefied gas, pharmaceutical products, and foodstuffs from the US. If the EU retaliates with its own tariffs, prices could rise, affecting the Croatian market, which is heavily reliant on imports,” Novotny explained to 24sata.
How this situation will unfold remains uncertain, but it is clear that Croatia could face economic pressure as the trade war between the US and the EU escalates.
