Cypriot businesses are bracing for potential fallout from a trade war between the United States and the European Union, as Brussels readies retaliatory tariffs in response to threats by US President Donald Trump. 

The federation of employers and industrialists (Oev) warned members that American products could face additional EU duties and urged them to submit comments by Friday, July 25 at 11.00 am.  

The feedback will help shape Cyprus’ submission to the European Commission. Oev noted that the views of Cypriot companies would be “decisive” in defining the Republic’s position during EU-level negotiations. 

Several EU countries are already pressing for carve-outs to shield sensitive exports from potential US retaliation.  

France and Italy, for example, have lobbied for bourbon whiskey to be excluded from the European list, fearing counter-duties on wine, olive oil and dairy products. Cyprus is now preparing its own exemptions list in response to growing concerns from local importers. 

According to Cystat’s April 2025 trade bulletin, total imports reached €1.162 billion, up from €1.107 billion a year earlier.  

Non-EU imports accounted for €363.7 million, with leading partners including China (€73.9 million), Canada (€46.4 million) and, notably, the United States.  

Cyprus’ largest import categories included mineral products (€239.8m), vehicles and transport equipment (€222.0m), chemicals (€126.8 million), machinery and electrical goods (€117.1m), and food and beverages (€107.6m).

Meanwhile, exports in April climbed to €390.7m, compared with €352.4m in the same month last year. Mineral products led the way at €189.7m, followed by chemicals (€47.1m), animals and animal products (€43.1m), transport equipment (€35.2m) and machinery (€16.8m).

In December 2024 alone, Cyprus imported US goods worth €82m.

At the same time, exports to the US were valued at €23m in 2024, led by halloumi (€6.4m), electrical equipment (€3m) and olive oil, while re-exports of electrical parts reached €27m.

The European Commission’s draft tariff list targets €72bn in US goods, including aircraft, cars, machinery, chemicals, plastics, medical devices and agricultural products.

Military imports are excluded. In comparison, EU exports to the US totalled €94.4m in 2024, largely iron and aluminium scrap.

As a result, Cyprus faces significant exposure. With US imports forming a notable part of non-EU trade, Cypriot officials are under pressure to secure exemptions for sectors such as transport equipment, machinery, chemicals and food products when the EU finalises its list of countermeasures.