Despite the US threatening to impose new tariffs on European goods, Cyprus’ trade seems minimally affected at present, with exports to the US at €50 million and imports at €220 million.

“At the moment, Cyprus does not seem to be affected to a great extent,” said Keve secretary general Philokypros Roussounides during a call-in interview with a local radio station.

However, he pointed out that the real concern is whether the US will pressure Europe to impose increased tariffs on imports from China.

“In such a case, the shocks would be huge as Europe imports from China many times more products and would also create additional problems for European industries,” Roussounides explained.

“This will potentially create a new wave of inflation and in chains all this will have a huge impact on the Cypriot economy and the pockets of our compatriots,” he added.

Roussounides also noted emerging irregularities in the trade cycle, voicing concerns about how these might soon affect Cyprus’ trading relationships.

Keve said that it is closely monitoring the situation, hoping the impact on Cyprus will continue to be minimal.