Direct effect on Ukraine's economy from imposed US tariffs will be insignificant – Concorde Capital

The head of the analytical department of Concorde Capital Oleksandr Parashchii believes that the direct effect on Ukraine's economy from imposed US tariffs will be insignificant.

He told the Ukrainian News agency about this.

"The direct effect on the economy will be insignificant, because the share of Ukrainian goods exports to the US is very modest (2% of total goods exports in 2024). In fact, Ukraine's largest export item to the US is IT services (which outweigh all goods exports), and no duties were imposed on services. Of the main goods that we export to the US, cast iron and pipes. Moreover, dependence on the US is significant only in cast iron," he said.

At the same time, Parashchii emphasizes that if we talk about the indirect effect on our economy, it can be significant, since the duties affect the interests of our largest economies in the world, and therefore can negatively affect the state of the world economy, and therefore Ukraine.

"In this sense, it is important for us that our main financial partners (primarily European countries) do not reduce the level of support for Ukraine due to possible economic problems. Also, possible problems in the world economy can negatively affect the prices of raw materials, including those we export (grain, ore, metals). But all this can also significantly affect oil prices and seriously harm Russia's economic and military potential," the expert emphasized.

As the Ukrainian News agency earlier reported, on April 2, US President Donald Trump announced the introduction of "reciprocal tariffs" in response to the actions of other countries in the world, in particular, Ukraine will be subject to "basic" 10% duties.