Romania is currently preparing state aid schemes for companies affected by the customs tariffs announced by president Donald Trump on Wednesday, April 2, according to statements made by prime minister Marcel Ciolacu.

The US imposed tariffs on all countries worldwide, with a "minimum base tariff" of 10%, starting April 5. However, for some countries, the tariffs will be higher and will take effect on April 9. Tariffs for the EU will be 20%, while 25% will be the set customs tax on all cars manufactured outside the US.

The Trump administration claimed the tariffs were "reciprocal," but the formula used to calculate the tariffs is essentially based on the US trade deficit with each country, divided by the country’s exports.

The new US tariffs mark an escalation in the global trade war, and governments around the world are set to retaliate. Romania will be impacted by tariffs indirectly, through Germany, its most important trading partner and the primary European exporter to the United States, particularly in the automotive sector. 

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Romania’s automotive industry, a key sector, is preparing for a decline in orders. Auto parts manufacturers will be among the most affected. Analysts anticipate layoffs and price increases due to supply chain disruptions in the short term. In the long term, the trade conflict could redirect trade flows, forcing Romania to rethink its export strategies.

"We will protect Romanian companies, with all available resources, from the effects of the new customs tariff trade war between America and Europe. We are preparing support measures for all affected industries through state aid schemes that are as efficient and easy to implement as possible so that they can take effect as soon as possible,” Ciolacu said.

The prime minister also brought attention to new investments and opportunities seized by Romanian and foreign companies in Romania. “There is confidence in Romania, which is why investors are putting so much money on the table. This is the truth and the real image of our economy,” he said.

The European Union and the United States of America are crucial trade partners, with annual exchanges exceeding USD 1.3 trillion. The US exports tech products and energy to the EU, while the EU sells automobiles and pharmaceuticals to America, according to Libertatea.

radu@romania-insider.com

(Photo source: gov.ro)