TIRANA, April 4, 2025 — President Donald Trump’s sweeping new tariffs on global trade partners have sparked concern and debate across Europe and the Western Balkans, with Albania finding itself in an uneasy position—politically aligned with the United States but economically vulnerable and marginalized.
On April 2, Trump announced a blanket 10% tariff on imports from most countries, with Albania, Kosovo, and Montenegro among those affected in the Western Balkans. Serbia was hit with a 37% tariff, while Bosnia and Herzegovina faced 35%, and North Macedonia 33%. The European Union, meanwhile, was targeted with a 20% tariff as part of what the Trump administration is calling a “reciprocal trade policy.”
Albania’s Political Loyalty, Economic Disadvantage
While Albania received one of the lowest tariffs among regional countries, experts say the impact will be more symbolic than economic. U.S. foreign direct investment in Albania remains limited—around $200 million—compared to roughly $4 billion in neighboring Serbia.
“Economic relations between Albania and the U.S. are extremely weak, despite the fact that political and diplomatic ties are excellent,” said Albert Rakipi, Chairman of the Albanian Institute for International Studies in Tirana. “In that sense, the 10% tariff may be relatively painless, but it’s also a reflection of economic neglect.”
Rakipi described U.S.-Albanian ties as being “in transition,” noting that Tirana must now present fresh, strategic ideas to attract greater economic attention from Washington, particularly in the fields of defense and security.
Opposition Vows to Reopen Talks with U.S.
Former president and current opposition leader Sali Berisha responded to the tariff decision by vowing to negotiate directly with the U.S. administration if his Democratic Party wins the upcoming May 11 parliamentary elections.
“The Democratic Party government will have on its agenda open negotiations with U.S. authorities on the issue of tariffs,” Berisha told reporters. “I am optimistic because Albania, along with Kosovo, has received the lowest tariff among the region.”
Berisha also pledged to present specific proposals for deepening defense and security cooperation with Washington.
Kosovo Pushes for Reciprocity by Removal
In neighboring Kosovo, the American Chamber of Commerce called on the government to unilaterally remove the 10% customs duty on U.S. goods, in hopes that the United States would reciprocate.
“This tariff will reduce the competitiveness of Kosovo products in the American market,” said Arian Zeka, head of the Chamber. Kosovo’s exports to the U.S. rose from €3 million in 2019 to over €130 million in 2022, making access to the American market increasingly important.
EU Struggles with Shock of Tariffs
While the Balkans received a patchwork of tariff rates, the European Union faces one of the most significant trade blows. The 20% U.S. tariff is expected to lower eurozone GDP growth by 0.3 percentage points over the next two years, according to economists.
“Wednesday’s tariff announcements by President Trump should be the final reminder that theTransatlantic relationship has changed for good,” one European analyst said. The EU has delayed its retaliatory tariffs until mid-April but has warned that countermeasures will be enacted if no agreement is reached.
Possible EU responses include reinstating tariffs on U.S. goods like agricultural products, textiles, furniture, and electronics, as well as tightening regulations on U.S. tech companies. A more aggressive option would involve invoking the Anti-Coercion Instrument to limit American firms’ access to EU markets—though this requires approval from a qualified majority of EU member states and could take weeks to implement.
Strategic Opportunity Amid Economic Fragility
While Albania may not face immediate economic fallout from the tariffs, the situation offers a strategic opportunity to reshape its relationship with the U.S.—moving from symbolic alignment to practical partnerships.
“Albania has supported U.S. foreign policy in the Western Balkans like no other country in the region,” Albert Rakipi said. “But now it must match that loyalty with a strategy that attracts investment, innovation, and deeper cooperation.”
As Washington redefines its global trade policies and the EU braces for retaliatory measures, smaller partners like Albania must find their footing in an increasingly transactional world.
