Here is how Serbia will be impacted by Trump's new tariffs: THESE industries to be affected

Photo collage: Tanjug/AP, Shutterstock

New tariffs announced by US President Donald Trump represent a serious economic blow to Serbia, as Serbian products exported to the US will now be more expensive and less competitive on that market.

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With an import tax of 37 percent, Serbia is among the countries most affected by these measures, which could have significant consequences for the domestic economy.

Which products will be affected?

The decision means that all products exported from Serbia to the US will be burdened with additional costs. This includes:

1. Agricultural products - fruits, vegetables, frozen foods, meat products, wines and alcoholic beverages, which are already present on the US market.

2. Metal and mechanical industry - export of steel and aluminum from Serbia to the US will now become significantly more expensive.

3, IT sector - although software and IT services are not directly affected by the tariffs, additional costs for Serbian firms working with US clients may affect competitiveness.

How will that affect the Serbian economy?

- Decreasing exports - Serbian companies will have to either increase prices of their products in the US or reduce profit margins in order to remain competitive.

- Loss of market - Due to high tariffs, US companies may turn to other suppliers that are not affected by these measures.

- Possible job losses - If domestic companies are unable to maintain their contracts with the US, there could be a reduction in production and layoffs.

- Impact on foreign investments - US companies operating in Serbia might consider reducing their investments if doing business becomes more expensive.

Can Serbia do something?

Considering that Serbia is exposed to significant tariffs, it is expected that the authorities will try to negotiate an exemption or reduction through diplomatic channels. Possible options include:

• Bilateral negotiations with the US - an attempt to exclude Serbia from these measures or to find some special arrangement.
• Turning to other markets - increasing trade with the European Union, China, and Russia to make up for the losses.
• Increasing domestic production and processing - investing in added value of products in order to reduce the impact of tariffs on competitiveness.

Trump's decision could change the structure of Serbian exports in the long term, but also affect future economic relations with the US. It remains to be seen how Belgrade will react and whether this measure will be a temporary or long-term obstacle for Serbian exporters.

(Telegraf Biznis)