Cyprus is not immediately affected by the tariffs imposed by US president Donald Trump, but the risk of inflationary pressures on the country remains, Finance Minister Makis Keravnos said on Tuesday.

Speaking on the sidelines of the general assembly of the Association of Cyprus Tourist Enterprises (Stek), he said that while Cyprus is not directly affected for now, continued tariffs could pose economic challenges.

“The EU has already expressed its concerns,” he said, adding that “Trump’s actions are creating issues around the globe”.

“As an EU member state, we are aligned with the European Commission’s position, and certainly, tariffs will not facilitate global trade,” he said.

“On the contrary”, he continued, “they will create barriers and inflationary pressures.”

Asked about possible countermeasures, he said discussions are ongoing within the European Commission.

“There was already a discussion at the previous finance ministers’ meeting, and it is also on the agenda of the next meeting next Tuesday, that the EU is thinking of addressing this problem.”

Moreover, Keravnos stressed the need for dialogue, saying that “these issues should be resolved through dialogue and discussions, not through countermeasures, which may have the opposite effect”.

It should be noted that the European Union vowed to take “firm and proportionate countermeasures” in response to Trump’s decision to impose tariffs on all steel and aluminium imports, heightening concerns of a trade war.

Earlier on Monday, Trump signed proclamations increasing aluminium tariffs from 10 per cent to 25 per cent, removing country exemptions, quota agreements, and numerous product-specific tariff exclusions for both metals.

European Commission president Ursula von der Leyen expressed “deep regret” over the US decision, stating that tariffs function as taxes that harm businesses and burden consumers.

Over the past decade, EU steel exports to the US have averaged approximately €3 billion euros annually.

“Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests,” von der Leyen said in a statement.