The government told how the US duty will affect the exchange rate and food prices in Ukraine
The 10% US tariff will not have a significant impact on food prices in Ukraine, as its level is low and the share of Ukrainian exports to the US remains insignificant. About this stated Minister of Economy Yulia Svyridenko.
“The tariff at the level of 10% is relatively insignificant. At the same time, the volume of our exports to the USA is also not too high – 2.1% of the total volume of exports of goods by the end of 2024. More than half of them are cast iron and pipes. The production of the agricultural sector is only about 137 million dollars. Therefore, the tariff will not have a tangible direct impact either on the volume of bilateral trade, or on the exchange rate and domestic prices on the consumer market of Ukraine”, — noted Svyridenko.
According to her assessment, US customs measures will not lead to exchange rate fluctuations. In the short term, according to Svyridenko, such tariffs can stimulate producers to reorient themselves to other markets, in particular domestic.
In the longer term, the countries subject to the tariff may resort to dumping, which will change the competitive environment, but will not have a significant effect on the exchange rate or prices. Svyridenko emphasized that everything will depend on the reaction of the states to the American tariffs.
Washington, according to her, also seeks to weaken the dollar due to accusations of partners of currency manipulation. This may affect the markets, however, thanks to international financial support, Ukraine’s macroeconomic stability should remain unchanged.
“We have good support for macro-financial stability in Ukraine with the support of partners and international institutions, so we do not expect significant fluctuations.” – explained Svyridenko.
We will remind that on April 2, Trump announced the introduction of tariffs on all imports in the amount of at least 10%. They will be applied from April 9.
