The fee imposed by Trump ? What consequences does it have for businesses in Kosovo?

But that will change after 5 April, when US President Donald Trump's decision on the 10 per cent fee for imports from Kosovo comes into force.

Trade measures for Kosovo are part of a broader Washington decision targeting all countries in the world with tariffs.

The company's owner, Valon Osmani, says this decision will have an impact on his business, as most consumers are Americans.

The Vallone Fashion Group is known for its elegant and modern wedding dresses.

Osmani says that seven years of export products to the United States totaling up to 800,000 euros annually.

We are now embarrassed because we do not know how customers will react, whether they will continue to order or cancel certain messages. Now it remains to see how this situation will affect. Normally, we will take certain measures depending on developments”, he says.

Osmani says he is not interested in reducing the amount of exports, but aims to increase product prices.

Economic organisations in the country have warned that the 10 per cent tariff will increase the prices of products originating from Kosovo, with implications for businesses.

They say that since 2019, Kosovo's overall exports to the US have seen significant increases and mainly due to improved quality of products.

Kosovo Customs data confirms this trend. In 2019, exports to the US amounted to 3m euros, while three years later that figure reached over 131m euros.

Meanwhile, in the first three months of this year, according to Dogan, exports have reached 5.6m euros, of which, 3.2m euros belong to the clothing category.

Consequences for Kosovar exporters

According to the chairman of the American Chamber of Economics in Kosovo, Arrian Zeka, the 10 percent US-set fee can have an impact on business revenues and on the reduction of workers.

The “will definitely have impact, especially in the short term. It should be seen that some goods exported from Kosovo to the US have had lower prices, which have given Kosovo producers a competitive priority”, Zeka says. Periscope.

According to the chairman of the Kosovo Chamber of Economics, Lulzim Rafuna, the costing of products Kosovo exports ʹ due to the US tax may also reduce demand for them, hence production.

“Businesses will try to find new markets, but this takes time, commitment and investment. It's not something that happens overnight, it's not easy to reorient immediately at a new Mahx1> market, Rafuna said in an interview.

To ease the tax effect on exporter producers, economic organisations require the Kosovo government to take extenuating measures.

The Chamber of Commerce and Industry in Kosovo called on the Government to support businesses affected by the decision.

U.S. goods tariff removal required

Meanwhile, Kosovo President Vjosa Osmani asked the government to suspend the 10 per cent customs fee for goods from the United States.

Following the request that the president, Kosovo's incumbent Minister of Finance, Iron Murati, said late Thursday that the government cabinet is considering the fee to imports from the US.

The same demand as Osman did the American Economic Oda in Kosovo, which estimated that now is the right time for Kosovo to fully remove the fee applied for American goods.

“This move would help Kosovo better position itself in future efforts to pursue a formal free trade agreement with the United States”, says the leader of this Ode, Arrian Zeka.

On the other hand, Kosovo Economic Ode leader Lulzim Rafuna thinks institutions should use all diplomatic and economic channels to negotiate the suspension, even provisional, of this fee.

We've had similar cases before. For example, during the administration of President Trump, a customs duty to Canada was suspended for two months. So this is possible”, he points out.

In addition to Kosovo's imports, the 10 per cent US fee has also imposed on those from Albania. Serbia has been charged with a fee of 37 percent, Bosnia and Herzegovina 35 percent, and North Macedonia 33 percent.

In contrast, imports from the European Union to the US have been imposed by 20 percent.

Kosovo, which is dependent on EU imports, according to business representatives, can feel double impact on these tariffs, creating new challenges for the country's economy. /REL

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