The United States has imposed a 10% taxation on goods imported from Armenia, Azerbaijan and Georgia under new, wide-ranging customs duties on almost all countries of the world.
This happened within the framework of the US president Donald Trump's "day of liberation", during which he introduced duties ranging from 10% to 50% on goods imported to the United States.
Armenia, Azerbaijan and Georgia were subject to the lowest rate of work of 10%.
Trump, complaining of large trade deficits with many countries, has repeatedly argued that duties are essential due to the fact that America was "exploited" by the remainder of the world.
However, the United States has large trade surpluses with Armenia, Azerbaijan and Georgia, which means that they export to these countries goods of higher value than those they import.
The trade imbalance was peculiarly clear in Georgia. According to the U.S. Trade typical Office in 2024, Georgia imported $1.7 billion worth of goods from America, while it only exported $165 million worth of goods.
Neighborhood Russia was 1 of the fewer countries that were completely spared. Explaining this decision, White home press secretary Karoline Leavitt told the Axios portal that American sanctions already "disable any crucial trade" with Russia.
However, with a value of $3 billion, Russian exports to the US in 2024 were much higher than exports from the countries of the South Caucasus.
Trade with the United States is not a crucial part of the exports of Armenia, Azerbaijan or Georgia. However, economists inform that a global trade war can origin serious economical problems worldwide.
On Thursday, Azerbaijani economist Rowshan Aghayev warned on Facebook of the advanced hazard of a global recession caused by the U.S. trade war.
"If the beginning of the trade war leads to a global recession, a fall in energy prices and a turmoil in financial markets can bring crucial losses," Aghayev said.
He warned that due to its dependence on oil and gas exports Azerbaijan could have serious consequences.
"Under current conditions, countries with a non-diversified economy, advanced dependence on natural material income and a primitive production structure will have the top impact of the global economical crisis," he wrote.
"Everyone should have contingency plans on their desk and ahead of them for the worst case scenario," he added.
Source: oc-media.org
Contribution: BIS –Study Bulletin
