MP discusses consequences for Ukraine in case of EU tariffs
Photo: Danylo Hetmantsev, MP (Vitalii Nosach, RBC-Ukraine)
The European Union countries account for the largest share of Ukraine's exports. If the bloc imposes tariffs, the consequences could be catastrophic, Member of Parliament and head of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, Danylo Hetmantsev, stated this in a comment to RBC-Ukraine's YouTube channel.
The MP emphasized that in the case of the European Union, everything will depend on which goods and manufacturers might face tariffs or whether it will be a case of "global protectionism," similar to the US.
"Depending on this decision, we could see various consequences for Ukraine. But all of them will certainly be negative, and some of them may even be catastrophic. Because when we talk about the European Union, it is our number one importer. That means we export the largest percentage of our total exports to EU countries," Hetmantsev added.
He clarified that 60% of Ukraine's exports are directed to EU countries, amounting to about $24.7 billion annually.
As the MP reminded, Ukraine and EU countries have had an export visa-free arrangement for the third consecutive year. Its validity ends on June 5. And in the case of trade wars, the extension of this visa-free regime could be complicated.
"The protection of their domestic producers could lead to additional restrictions for exporters from other countries, who would be limited in their exports to ensure that the domestic market favors their producers. And in this case, we saw what happened a year ago at the Polish border," Hetmantsev pointed out.
US tariffs
US President Donald Trump decided to impose tariffs on imports from several countries, including European Union countries.
As noted by the President of the European Council, António Costa, such a significant economic mistake by Trump will affect not only the US and EU countries but also other nations.
