“US tariff will not have a tangible direct impact on the exchange rate and prices of products in Ukraine – Ministry of EconomyAccording to Yulia Svyrydenko, the US tariff on Ukrainian exports is relatively insignificant and will not have a tangible impact
on the Ukrainian economy. She also added that the loss of the US market may have the opposite effect. Possible price dumping, but
no significant exchange rate fluctuations are expected.”, — write: unn.ua
Will the US tariff affect the exchange rate or prices of products in Ukraine? Short answer – no, it will not affect
“The tariff at the level of 10% is relatively insignificant,” she noted.
At the same time, according to her, the volume of our exports to the US is also not too high – 2.1% of the total volume of exports of goods in 2024. More than half of them are pig iron and pipes. Agricultural products account for only about 137 million dollars.
Therefore, the tariff will not have a tangible direct impact on either the volume of bilateral trade, or on the exchange rate and domestic prices in the consumer market of Ukraine
In the short term, according to her, this may even have the opposite effect. For many producers of products in the world, the loss of the US market or a significant limitation of it, as Svyrydenko pointed out, will mean that they need to enter new markets. In particular, the Ukrainian market.
“In the long term, countries that have been subject to duties may start dumping prices. That is, lower them to push out competitors. Then this may affect our producers. But this will not significantly affect either the exchange rate or prices,” the Minister of Economy noted.
But all this, according to her, “provided that the countries that have been subject to duties will not respond in the same way to goods from the United States.” Then the forecast, she said, will depend on the decisions of these states.
“Another argument regarding the dollar exchange rate – one of the reasons for the introduction of global tariffs by the US was “currency manipulation” by trading partners. That is, they believe that some countries artificially underestimate the exchange rate of their currency against the dollar. Therefore, the US seeks to weaken the dollar against other currencies. This does not mean that its exchange rate will automatically decrease, but this is one of the factors that will affect the foreign exchange market,” Svyrydenko noted.
“We have good support for macroeconomic stability in Ukraine with the support of partners and international institutions, so we do not expect significant fluctuations,” the First Deputy Prime Minister said.
“Difficult, but not critical”: government assessed Trump’s tariffs for Ukraine and is working on better terms03.04.25, 09:50 • 115702 views
Addition
US President Donald Trump introduced duties of at least 10% on Wednesday for almost the entire world, with one notable exception: Russia.
Ukraine, against which Russia has unleashed a war, will face a “mutual” US tariff of 10%.