Economy

The impact of the new US duties on Ukraine will be difficult, but not critical. But who will feel it

Ukraine now has a chance to negotiate other terms of trade with the United States. This was stated by the Minister of Economy of Ukraine Yulia Svyrydenko, commenting on the reports of new duties imposed by the United States, according to [Kommersant].

She reminded that Ukraine will be subject to a general duty of 10%.

“There is no separate higher duty, such as Moldova’s 31% or the EU’s 20%, for Ukraine,” Svyrydenko said and added: “It is difficult, but not critical.”

According to her, our duties on American goods are quite low: 10% on cars, 0% on coal and oil. So now, according to the Minister of Economy, we have a chance to negotiate other terms and the American statement clearly indicates this possibility.

According to Yulia Svyrydenko, Ukraine has a lot to offer the United States as a reliable ally and partner, and both our countries will benefit from fair duties.

How Ukraine traded with the United States in 2024

Minister of Economy Yulia Svyrydenko cited the following figures: “Last year, Ukraine exported $874 million worth of products to the United States, of which $363 million was for pig iron and another $112 million for pipes. In return, Ukraine bought $3.4 billion worth of goods from the United States. In total, Ukraine exports more than 600 different categories of goods to the United States (very different ones, even wrenches), including 65 types of products worth more than $1 million.

At the same time, the official acknowledged that if everything remains as it is, the US universal duty will hit mostly small producers.

“That is why we are already working to ensure that Ukraine has better conditions,” Svyrydenko said.

Ukrainian pipe producers will feel the negative impact of the duties

More than 75% of Ukraine’s exports to the United States are pipes. This is emphasized by the Institute for Economic Studies. They state that the US market plays a key role in this industry.

In the total exports of pipes for oil and gas pipelines from Ukraine, the US share is 37%. And in the export of pipes for drilling oil and gas wells, it is 38% (the EU’s share is 21% and 6%, respectively). The US market also consumes 18% of Ukrainian seamless steel pipes exported.

The Institute believes that the impact on our producers could be serious, as the sector is already suffering from the high cost of international logistics and military risks.

As a reminder, on April 2, 2025, US President Donald Trump announced the introduction of new “reciprocal duties” that will hit imports from around the world, including 20% for the European Union and 10% for Ukraine, calling it a “Day of Liberation” for the American economy. [comersant]reported. Trump called the measures “historic,” emphasizing that they combine a base tariff of 10% for all countries and additional rates for certain countries that he believes trade unfairly with the United States. China received a 34% tariff “gift”.

As reported by [Kommersant], the reaction of global markets to this unprecedented step was not delayed. First of all, it was felt by the shares of those tech giants that have production centers in China and Taiwan.

Apple suffered the most, as it still manufactures its iPhones in China – its shares fell by a fantastic 7%. Nasdaq futures fell by 3.3%, S&P 500 by 2.7%, FTSE by 1.6%, and European futures fell by almost 2%.

The entire “Magnificent Seven” of American tech giants (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla) lost about $760 billion in value at once.

Japan’s Nikkei fell by 2.8% after the previous drop to a minimum of eight months, with almost every index member falling.

Gold hit a record high of $3,160 per ounce.