Croatian Prime Minister Andrej Plenković said today, regarding US import tariffs on goods from the European Union, that the Government, in cooperation with the EU, will protect Croatian interests in trade with the US.
"This is a decision that will perhaps have more consequences globally than it will significantly threaten the Croatian economy, but there is always an element of a chain reaction that is only visible in the second phase," said Plenković in his opening speech at the Government session in Zagreb.
He emphasized that one-third of global trade goes to trade between the US and EU member states and assessed that the tariffs announced by the US president will negatively affect the competitiveness of economies on both sides of the Atlantic.
"We believe that open trade issues should be resolved through dialogue, agreements, and even through the World Trade Organization system," said the Croatian Prime Minister.
Plenković stated that the government held consultations with European Commission President Ursula von der Leyen last weekend about the potential impact of the measures on the Croatian economy and added that, when it comes to countermeasures at the EU level, Croatian interests will be taken into account.
He recalled that Croatian exports of goods to the US last year amounted to around 800 million euros, which is approximately the same amount as exports.
"There are certain products that are of particular interest to Croatia when it comes to trade with the US," he added.
Croatian National Bank Governor Boris Vujčić assessed that the import tariffs introduced by Donald Trump cannot threaten the Croatian financial system.
He told reporters in Zagreb that it could, however, happen that high tariffs lead to a slowdown in GDP growth, and due to retaliatory measures against the US, to a higher inflation rate. Vujčić assessed that tariffs generally have a negative impact on the global economic outlook.
The Croatian Employers' Association announced today that the introduction of US tariffs in the short term should not have significant direct negative consequences on the Croatian economy, but that they could be felt indirectly if a recession were to occur among the most important trading partners.
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