Advice to Ukraine: Remove all Tariffs on US goods
Below is a condensed article for a Ukrainian audience by Jed Sunden, director of the American Ukraine PAC.
As an American who wants to support Ukraine, I founded the American Ukraine PAC to influence the American policies that affect that relationship.
For nearly two decades, I wrote weekly editorials on Ukrainian politics as the founder and publisher of the Kyiv Post and Korrespondent.net. If I was writing an editorial today, my advice would be simple: The Ukrainian government should remove all tariffs on American goods.
Last week, President Trump started a trade war with the world. New tariffs were announced, including a 10% tariff Ukraine.
These tariffs were unilateral. Even more galling, no new tariffs were imposed on Russia, though it remains in a much higher tariff bracket due to sanctions.
Some countries are talking about reciprocating with new tariffs on American goods and starting a new trade war. Others have taken the opposite approach and made blanket offers to remove all tariffs on American products.
Israel did so 5 days ago. In a statement, Prime Minister Netanyahu said “"In addition to the economic benefits for the economy and citizens of Israel, this move will allow us to further strengthen the alliance and ties between Israel and the United States."
Vietnam announced the removal of tariffs yesterday. India announced its plan to do so also. As did Taiwan and Cambodia and Argentina.
Each of these countries valued the total relationship with the United States more than specifics of the recent tariffs.
Ukraine should follow suit and do the same.
President Trump seems to view all negotiations as transactional. Acceding to his tariff demands would reset American-Ukraine relations after the raucous meeting of President Trump and his team with President Zelensky last month.
The planned signing of the Mineral Deal was derailed by Key figures in the Trump Administration accused Ukraine of being ungrateful which led to personal attacks and a failed meeting. It also led to the disrupted flow of intelligence to the Ukraine Military.
Were the accusations unfair? Perhaps. But, American support is still valuable for Ukraine.
Total imports from America to Ukraine total about $2bln. Automobiles are the top product. At minimum, Ukrainian consumer will be able to buy new American cars a bit cheaper.
Going further, perhaps removing tariffs on American goods will be the impetus to remove all barriers to trade in Ukraine, like Argentina has done. Economic reform is tough. Perhaps, this can kick start it.
Next week, a delegation from Ukraine led by the Minister of Economics Svyrydenko will be arriving in Washington next week to discuss a new draft agreement for the mineral deal.
A new delegation will be handling a new round of discussions. My advice: Seize the initiative and announce the removal of all tariffs on American goods. And see how the American-Ukraine relationship will flourish.