In Ukraine, Trump's customs policy will affect prices for goods with foreign components - expert
Kyiv • UNN
The price increase will affect goods with foreign components. Prices for products with Ukrainian parts will hardly change, but overall inflation will affect the cost of all goods.
The price increase, which may occur due to the introduction by US President Donald Trump of a 10% duty for Ukraine, will primarily concern goods that were produced with the involvement of foreign components. A rapid increase in prices for a completely domestic product is not expected, the head of the board of the Association of Exporters and Importers "ZED" (foreign economic activity) Serhiy Svistil explained to the UNN correspondent.
Details
"Ukraine is not a competitor to the United States in terms of forming a trade imbalance. We supply very little production there, and for us this duty, which is 10%, is the minimum that could have been foreseen in principle. Some companies, including foreign ones, have already considered Ukraine as the next platform to supply both to the United States and to the countries of the European Union," said Svistil.
The expert added that in terms of product prices, Ukraine will have the same price fluctuations as in the United States, since the states are partially linked by joint production.
Ukraine may have the same problematic issues in terms of price fluctuations as in Europe and the United States, because all countries are partially connected by joint production. We will be able to track what will be associated with the increase in price if something is produced abroad. If we produce goods in Ukraine, then there will be no such rapid increase in tariffs, and this, we can say, will be a certain stabilization in relation to product prices
As an example, Svistil cited the situation on the market of cars, electronics and other equipment. He noted that the prices for goods with domestic components will not change significantly.
Prices for electronics, such as washing machines, televisions, ovens, will depend on where the production takes place. If we are talking about companies that produce their own completely here, in Ukraine, then no price increase is expected. However, if we are talking about goods with foreign components, then yes, the price increase will occur
At the same time, he added that in the near future, all goods will start to rise in price under the influence of inflation, so there is no particular point in paying attention to the duties introduced by President Trump. Inflationary processes will affect all countries.
Addition
Reuters wrote that Trump's duties on Chinese goods may force Apple to raise prices on iPhone. The most expensive model may cost about $2,300, which will lead to a drop in demand.
Also, due to new duties on clothing manufacturers in Vietnam and Indonesia, prices for Nike and Adidas may also increase. Shares of Nike, Adidas and Puma fell sharply after the announcement of the duties.
However, according to Vice Prime Minister - Minister of Economy of Ukraine Yulia Svyrydenko Yulia Svyrydenko, the US duty on Ukrainian exports is relatively insignificant and will not have a noticeable impact on the economy of Ukraine. She also added that the loss of the US market may have the opposite effect. Possible dumping of prices, but significant exchange rate fluctuations are not expected.