Moldova seeks grace period for US 25% tariff on exports
Moldovan authorities have requested a grace period from the United States of America (USA) before a 25% customs tariff is applied to all Moldovan products, announced State Secretary at the Ministry of Economic Development and Digitalization, Cristina Ceban, on Thursday, July 31, during the "Public Space" show on Radio Moldova.
Moldova needs time to finalize a possible bilateral agreement, the quoted source stated.
Additionally, Moldova will continue its dialogue with the American side and local exporters to identify the most viable options for maintaining competitiveness in the external market, while intensifying efforts to diversify export markets, Cristina Ceban added.
"We don't have an answer yet. We expect to receive one from the Department of Commerce. It's not just the Department of Commerce, but also the political and economic sectors that collaborate and discuss within the United States, and then issue final decisions. I don't want to say whether this period will be extended or not, but that possibility exists," Cristina Ceban declared.
The United States market is important for all wine producers globally, according to Valeriu Mihăluță, general director of a winery.
He has been exporting wines to the American market for over 15 years and says he will continue to do so, but will have to increase prices. The exporter added that he hopes these taxes will be reduced to 15 percent.
"For the Republic of Moldova, being in this market is also a priority. And our company is trying to maintain its presence. We've been present for over 15 years. Annually, about 5% of our exports go to the United States. Of course, the imposed taxes will affect us. We don't know what the impact will be. So, after discussions with our importers, they will still have to increase prices, and we'll see how these increases affect sales," the winemaker noted.
Last year, dessert wines accounted for 48% of total exports to the United States, as stated by Alexandra Șian, State Secretary at the Ministry of Agriculture and Food Industry, on Radio Moldova.
"For the agri-food sector, vermouths and concentrated fruit juices, fresh grape wines, and sparkling wines are at the top. We also have bakery products and, to a lesser extent, rapeseed and walnuts, but these represent a very small volume, around 1-2% annually of the total agri-food exports to the United States," Alexandra Șian specified.
These taxes will not have a significant impact on Moldova's economy because local producers export very little to this market, commented economic expert Viorel Gîrbu.
"Our exports to the American market haven't been very high to begin with. In 2024, there was an increase in exports. Overall, we have a trade deficit with the American economy; our trade is very small. We don't have much to offer Americans, but at the same time, we understand that we are geographically very far apart. We produce very little in large volumes, very little that is competitive or interesting for the external market, and what we do produce can't readily be found in other markets," the expert pointed out.
It's worth noting that the United States of America announced it would apply a 25% customs tariff on all products from the Republic of Moldova starting August 1.
The Ministry of Economic Development and Digitalization of the Republic of Moldova stated that the announced tariff is lower than the 31% proposed three months ago by the American administration, and that this reduction was achieved through diplomatic and technical initiatives.
According to Chișinău authorities, the United States ranked 14th last year among Moldova's trade partners, with a 2.5% share, and in recent months, Moldovan exports across the ocean have decreased by 40 percent.
Translation by Iurie Tataru
