A new cycle of trade tensions is triggered by the US decision to impose tariffs of 30% on imports from the European Union (EU), effective from August 1st. This development is expected to significantly affect European trade, with consequences reaching Greece as well, despite the fact that it is not at the core of US-EU trade relations. The impacts – both direct and indirect – on the Greek economy cannot be ignored.
Specifically, the announcement of the imposition of 30% tariffs on European and Mexican products by President Trump, in case negotiations fail, represents yet another proof of the aggressive direction of US trade policy, which may lead to countermeasures from the Commission. It should be noted that the tariffs will take effect from August 1st and will cover a wide range of products, from automobiles and steel to food and pharmaceutical preparations.
For the European Union, this decision poses the risk of serious damage to its exports, which in 2023 exceeded 500 billion euros to the United States. Particularly exposed are countries such as Germany, Italy, and Ireland.
In absolute numbers, Greece does not rank among the top exporters to the US. According to ELSTAT data for 2023, Greek exports to the US amounted to nearly 2.5 billion euros, corresponding to approximately 4% of the country’s total exports. However, the importance of the American market for certain traditionally export-oriented sectors is significant. Among them:
- Agri-food products, such as feta cheese, olive oil, wines, and packaged foods,
- Pharmaceutical products and high-tech preparations,
- Metal products, such as aluminum and alloys.
The imposition of 30% tariffs on these categories is expected to make Greek products more expensive and less competitive for American consumers or wholesalers.
Tariffs: Greater threat from indirect impacts on Greek economy
However, apart from direct burdens, Greek businesses are exposed to secondary impacts through their participation in European value chains. At the same time, increased transportation costs and destabilization of logistics may further burden export costs.
Additionally, uncertainty around the US-EU trade relationship may act as a deterrent to new agreements and investments in the export sector, especially in countries like Greece that do not have a strong “cushion” of negotiating power.
Finally, significant is the potential blow that tariffs may cause to other European economies with close trade relations with the US – economies that are key partners of Greece and important markets for Greek products. For example, if Germany faces recessionary pressures, this could lead to reduced demand for Greek goods, negatively affecting our country’s trade balance and fiscal stability.
