North Macedonia moves to scrap US tariffs amid trade talks

The plan of the Macedonian government requires parliamentary approval and was presented after the United States imposed a 33% tariff, which is notably higher than the 20% imposed on the European Union.

"By unilaterally reducing customs rates, we are sending a message to accelerate the process of reciprocity in a mutual trade exchange," said the Macedonian Finance Minister.

The value of trade exchange between the two countries amounted to $314 million (£232 million) last year, including the export of Macedonian products to the USA - about $100 million (£74 million). About 70% of Macedonian exports go to EU markets.

North Macedonia's Foreign Minister Timczo Mucunski informed that he discussed with US Secretary of State Marco Rubio last week in Washington the possibility of concluding a free trade agreement between the two countries.

The USA is targeting steel and aluminium imports. Donald Trump announced that from 4th June, 50% tariffs will be imposed on both raw materials.

This is a doubling of the previously existing tariffs, which have already caused trade tensions. The decision was made a few hours after the accusation that China broke previous agreements regarding trade in critical materials.

Metal prices have risen, and foreign producers are experiencing losses. Europe and Asia are warning of a new wave of trade war, states Reuters.

Experts warn that high raw material prices will limit demand from the industry. Eoin Dinsmore from Goldman Sachs stated that rising prices are expected to further reduce demand for steel in the industrial manufacturing sector, which is already projected to contract this year.