The imposition of tariffs by the United States of America could be a “double-edged sword” for Albania. The country is expected to be negatively affected in terms of exports and positively in terms of imports.
"We must say at the outset that due to the small size of our economy, the impact of the application of tariffs will be minimal," economic expert Selim Blliku told A2 CNN.
But despite its small economy, although geographically distant, the US was Albania's fifth largest trading partner last year in terms of imports, which amounted to 20.5 billion lek.
On the other hand, Albanian exporters last year exported goods worth over 7 billion lek to the United States, ranking the transatlantic country in 13th place in terms of exports.
Meanwhile, the strongest effects are expected to come from the application of a 20 percent tariff on European Union countries.
"If we take the European Union countries, we have closer relations with Greece and Italy. Normally this would have negative effects on exports to these countries as the latter would face increased tariffs from the US," Selim Blliku further said.
But Albania, like almost every other country in the world, is not a remote island isolated from the general principles of economic functioning. Therefore, if it were to lose out in exports, the opposite is expected to happen in imports due to President Donald Trump's protectionist policies that aim to protect the interests of American producers by setting up barriers with other countries.
"Markets today have become so interconnected and dynamic that any blockade is quickly resolved and new alternatives for trade exchanges are found. "European products destined for the American market, rejected by the latter in some way by imposing high tariffs, would potentially be brought to countries like Albania," economic expert Maksim Caslli told A2 CNN.
Albania conducts over 60 percent of its foreign trade with the European continent, so the economic performance of member states is critical for foreign demand and investment in the country. In the context of “a new global order in terms of trade,” experts are calling for the country to develop a new export model focused not only on vegetables and fruits.
"This is essential and not just for the sake of the situation. Albania needs added value in exports. To produce products that the world needs," Caslli added.
Albania, along with Kosovo and Montenegro, are the three countries on which only the basic tariff, 10 percent, from the United States of America will be applied. For products from North Macedonia, Bosnia and Herzegovina and Serbia, tariffs range from 33 to 37 percent. (A2 Televizion)
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