Stanic: Serbia is preparing arguments for talks with the US, proposal to abolish tariffs possible

Bojan Stanic, Assistant Director of the Sector for Strategic Analyses, Services, and Internationalization at the Chamber of Commerce and Industry of Serbia, told Kosovo Online that, according to unofficial announcements, a high-level meeting between Serbia and the United States is expected within the next month or two. A reasonable outcome may be reached regarding US tariffs on Serbian goods, potentially ensuring the sustainability of Serbian exports to the American market.

According to a decision signed by then-US President Donald Trump on April 2, tariffs on goods from Serbia were increased to 37 percent. However, on April 9, Trump postponed the implementation of the new tariffs for around 75 countries by 90 days to allow time for the negotiation of new trade agreements.

Stanic stated that Serbia is already preparing a delegation for talks with the American side, and that the supporting arguments are being strengthened with various statistical data and facts showing that economic cooperation between the two countries continues to develop in terms of goods, services, foreign direct investment, and the number of companies being established in Serbia with majority American capital.

"As the European Union has proposed, Serbia could also put forward a proposal to completely eliminate tariffs between the two countries, especially when it comes to industrial products, so that tariffs would be zero both for American goods entering Serbia and for Serbian goods entering the US. However, of course, the American side approaches from a position of strength and insists on gaining something valuable in return. Whether that is preferential treatment for their goods, or possibly certain political concessions – energy, minerals, or even territory, if we take the EU's interest in Greenland as an example... That could, of course, be considered an extreme scenario," Stanic said.

According to him, there are about 660 companies in Serbia that export goods to the US, and Serbian products would no longer be competitive compared to American producers if the 37 percent tariff remains in place.

"The total export value to the US in 2024 was 620 million euros, and in the first two months of this year, the export of goods amounted to 100 million euros. These are mostly auto parts and car tires, but also include defense industry products – ammunition and various types of weapons, both military and hunting. There are also some agricultural products, frozen fruit, pet food... The export is concentrated in the hands of the 10 to 15 largest exporters, who account for about 70 percent of Serbia's total exports to the US, and all companies are concerned about how their goods will be treated in the US. Many companies that are not part of multinational corporations, for example, small or medium-sized companies that focus most of their exports on the American market, would be entirely wiped out from that market if the 37 percent tariff is applied," Stanic warned.

He explained that Serbia, as the leading country in the region in terms of production capacity, was initially hit with the highest reciprocal tariffs. Similar tariffs have been imposed on other regional economies with manufacturing sectors, for example, the US set a 35 percent tariff rate for imports from Bosnia and Herzegovina, and a 33 percent rate for North Macedonia.