Keravnos calls for serious dialogue on U.S. tariffs, opposes countermeasures

The issue of U.S. tariffs on steel and aluminium imports should be resolved through serious dialogue rather than countermeasures with no positive outcome, Finance Minister Makis Keravnos has said.

Speaking on the sidelines of the annual General Assembly of the Cyprus Tourism Businesses Association (STEK), Keravnos referred to the 25% tariffs imposed by U.S. President Donald Trump and noted that the European Commission was already discussing the matter, with Cyprus aligning itself with the EU's stance.

"This is not a desirable decision; it raises concerns worldwide and affects international trade," he said.

Keravnos stressed that the European Commission has already voiced its concerns and that Cyprus, as an EU member state, fully supports the Commission’s position.

"Such measures certainly will not facilitate global trade. On the contrary, they will create obstacles, economic disruptions, and inflationary pressures," he said.

The Minister said that Cyprus was not immediately impacted, however he warned that prolonged trade restrictions could have negative effects on the country’s economy.

Asked whether the EU should respond with countermeasures, Keravnos noted that the issue has being actively discussed by the European Commission and EU finance ministers. He said that the topic was raised at the previous EU Economic and Financial Affairs Council (ECOFIN) meeting and will be discussed again in the next session, which he was due to attend on 11 February.

"I believe these matters should be resolved through serious discussions, not through measures and countermeasures, as such an approach will yield no positive results," he noted.

When asked whether potential EU sanctions could also hurt European economies, Keravnos agreed, adding that the U.S. would also face consequences from its own tariff policies.

He urged patience as the situation develops, noting that upcoming high-level discussions within the European Commission would offer further clarity on the issue.

(Source: CNA)