New headache for Greek exporters – driven by US and Europe trade war

Reflection and insecurity for the future has been caused by the business community that is evolving between the US and the European Union.

Following the Trump decision to impose a 25% duties on steel and aluminum imports and the intention of imposing duties on the first and on alcoholic, countermeasures of 26 billion euros was announced by the European Commission.

The turmoil caused in transit trade are undoubtedly harmful to businesses and consumers, often ending at higher prices.

For many, this development was expected after the Trump election.

Already in February Henrick Adam, president of the European Union of Eurofer Steel, had pointed out that the situation would get worse, saying the EU would lose up to 3.7 million tonnes of steel exports as the US is its second largest market. However, the risks are not just about steel.

Only in 2024 the EU exported 38 billion euros to 38 billion euros to the US with its imports reaching only 14 billion euros from that country – so the imposition of duties and other products will bring in other areas in other areas.

In the middle of last week, Evangelos Mytilineos, president and CEO of Metlen, during his speech at the « Greece after VIII » conference of ideas, raised the issue of duties, noting that this is not just a financial issue, Like sanctions, they never lead to winners, except for losers, and noted that they cause inflation and recessionary impacts, affecting the global economy, Europe and of course Greece.

The US is according to figures from the Panhellenic Exporters Association the 5th major export market and occupy 4.8% of the country’s total exports.

According to Athens Chamber of Commerce and Industry President Yiannis Bratakos, « the imposition of duties is undoubtedly an option that causes losses for all involved, leading the world economy many steps back.

For Greek businesses, the US is an important market, which has been a significant increase over the last three years.

However, the percentage of Greek exports it absorbs remains low.

Therefore, although there will be a blow to the imposition of duties, it is estimated that the immediate impact on export trade will be relatively limited.

What is mainly of concern is the indirect consequences, from a generalized trade war between the US and Europe, which could cause price rise, freezing investment decisions and serious turmoil in major European economies, which are much more important partners in Greece, both in trade.

For his part, the president of the Athens Chamber of Crafts and the Attica Chamber of Commerce Constantinos Damigos stresses that the imposition of duties, despite the fact that the immediate exposure of the Greek economy to the US market is relatively small (4.8% of total exports).

« These are mainly indirect impacts, as the blow will mainly concern the EU by braking the growth rates of European economies and therefore the activity of export Greek companies.

The impact on the Greek export trade is expected to be limited, on the one hand, due to the relatively small market share and on the other due to the structure of exports mainly related to basic goods, raw materials and low -grade processing products. « 

However, he does not hide his reflection on the problems that could arise from the fact that « that our leading commercial partners, such as Italy and Germany, have significant export activity to the US, resulting in reduced export revenue possible to limit their imports from Greece ».

« Side Loss ». Another parameter is set by Vassilis Korkidis, president of the Piraeus Chamber of Commerce and Industry, saying that « that at a time when the European economy is trying to find its pace towards growth, the new order of things that the US is trying to set will have a serious » side loss « .

This, according to him, « because in addition to increasing prices that will come, boycott on the products and services that have already begun will hit many businesses and endanger a significant number of jobs throughout the range of industry and trade, and will disturb the supply chains and chains. »