Trump's Trade War Negatively Impacts Cypriot Exports

The "trade war" initiated by U.S. President Donald Trump is putting the normal development of Cypriot exports into question. Economic indicators may lose their positive momentum.

The United States is a significant market for Cypriot products, and according to experts, Trump's new tariffs threaten the exports of Cyprus's main trading partners and the European economy.

Economists agree that the tariff shock will have indirect rather than direct effects on Cyprus. Nevertheless, the situation remains ambiguous and changes almost daily.

There is no doubt that the U.S.-China trade war, during which both sides have imposed three-digit tariffs, also threatens the global economy. Trade between China and America is becoming unprofitable, which is destabilizing markets.

As for Cyprus, Trump's decisions create major problems. They slow the upward trend in Cypriot exports. The results of all efforts to register halloumi as a PDO, as well as to establish IT companies in Cyprus, could be jeopardized.

Cypriot exports in 2024 reached €23.6 million, accounting for about 2%. Washington imports halloumi, telecommunications and electrotechnical equipment, salt, oil, and cocoa spread from Cyprus.

According to data from the Trade Service of the Ministry of Foreign Affairs, last year the main export item was pharmaceuticals, and the primary importer was the United Kingdom.

The total volume of pharmaceutical exports amounted to €348 million: 28.31% of the total figure. Next was halloumi cheese (€324 million, 26.36%). In third place were waste and scrap metal: €88 million (7.13%).

Juices, fish, and potatoes also contributed about 4% to the total exports: €48.1, €47.5, and €47.4 million, respectively. Firefighting equipment made up 2.5% of exports, reaching €31.2 million. The volume of exported telecommunications equipment amounted to €30.9 million.

Following are plastic pipes: exports worth €27.7 million, or 2.25%. Finally, the list of key exported goods from Cyprus is concluded by gold, soft drinks, and fruits: €11 million or 0.9% of the total volume (each).