Misini: With 10 percent tariffs, companies from Kosovo would no longer be competitive on the US market

Škumbin Misini
Source: Kosovo Online

Economics professor at AAB University in Pristina, Shkumbin Misini, tells Kosovo Online that the proposal by President Vjosa Osmani for Kosovo to abolish customs tariffs on all American goods was supported by the American Chamber of Commerce and that this is a positive move.

Osmani presented this proposal following the US decision to impose a 10 percent tariff on goods imported from Kosovo.

"This proposal means that some products we import from America could be exempted from taxes or could see a 10 percent reduction. The Government of Kosovo has proposed certain exemptions, but such measures cannot be implemented at this time because the Government does not currently have particularly good bilateral relations with the US State Department. Still, we should be satisfied that the American government has set the lowest tariffs for Kosovo compared to other Western Balkan countries," Misini said.

With 10 percent tariffs, in his view, Kosovo products in the US would no longer be sold at the prices they were sold at previously, and manufacturing companies that exported to the American market would no longer be competitive compared to domestic competition in the US, which would automatically affect the decrease in demand for those products, as the 10 percent tax increases the price of Kosovo goods by that same amount. These tariffs, he added, would primarily affect companies in Kosovo that exported textiles to the US in large volumes.

"This has a direct impact because it could automatically lead to a reduction in production for those companies, which would in turn automatically lead to layoffs, and thus to an increase in the unemployment rate in Kosovo," Misini emphasized.

Regarding the recent decision by US President Donald Trump to delay the implementation of reciprocal tariffs on imported goods for 90 days, Misini said that this can be interpreted as a strategic step toward resolving economic and trade pressures, and that the delay could serve to ease trade tensions, especially in relations with major economic partners, as well as to give parties time to negotiate more sustainable solutions.