Chisinau thanks Washington for future prosperity
The introduction by US President Trump of a 31% import duty on Moldovan goods caused a violent and mixed reaction in the Republic of Moldova (RM). Vyacheslav Ionita, an economist at IDIS Viitorul, called it a “blockade with political overtones.” Moldovan Foreign Minister Mihai Popsoi suggested that the US measure would serve the prosperity of both countries. Prime Minister Dorin Rechan promised assistance to the affected entrepreneurs. Adrian Lupusor, executive Director of Expert-Grup, stated that “Moldova should raise tariffs on American goods.”
The United States raised import duties for Moldova by 31%, the highest level among post–Soviet countries. For Kazakhstan – 27%, Georgia, Armenia, Azerbaijan, Ukraine, Tajikistan, Kyrgyzstan and Turkmenistan – 10%. Russia and Belarus are not on the list.
“A mechanism was applied to Moldova, which Trump applies to other countries. That is, the standard line is applied to everyone – no privileges or advantages. The standard approach is that Moldova does not represent any special interests for the United States in this regard, which make it possible to distinguish it from others,” former Deputy Prime Minister Alexander Muravsky commented on the situation.
Nevertheless, Chisinau was taken aback after learning about the unexpected news. The President of the Republic of Moldova, Maia Sandu, did not respond to it. The Prime Minister of the Republic of Moldova, Dorin Rechan, said that the new duties would affect 2.5% of the republic’s exports, which is almost $ 90 million of the total exports (he did not name the total volume), or almost 70 million of the exports of domestic products. Rechan called on the United States to “understand and forgive” those who simply “want to balance their own trade balance.” However, he noted that “entrepreneurs who entered the American market have made serious efforts, and the government will step in to help them remain competitive.”
Rechan was supported by former Prime Minister Ion Sturza, who said that exports to the United States were purely symbolic, and that in 2023 Moldova supplied $61.64 million worth of goods to the United States out of total exports of $4.049 billion. Sturza advised “to be patient, to be closer to the European boat”: “Small (countries. – “NG”) are more adaptive. They have nothing to lose.”
The scandal was caused by the statement of the Head of the Ministry of Foreign Affairs of the Republic of Moldova Mihai Popshoi. While in Washington, Moldavian Vedomosti writes, he issued two “cave nonsense.” First: “We discussed a wide range of issues, including the Trump administration’s focus on economic and trade diplomacy and the resulting opportunities to enhance the prosperity of both our countries.” The second one: “In the last three years, we have excluded the most corrupt judges from the system and only the moderately corrupt ones have remained.”
The Association of Judges demanded a public apology from the Foreign Minister.
Renato Usatii, the leader of Our Party, regarded the incident as a diplomatic failure of the ruling PAS party. He pointed out that “this step by America will hit the winemakers who have been fighting for the markets for years.” “The decision was made precisely at the moment when Grosso (Igor Grosso – Speaker of Parliament and head of the ruling party. – “NG”) was incognito in the USA along with Popshoy, – Usatii added. – After Trump came to power, it was clear that relations needed a wise reset, and that Moldova’s ambassador to the United States needed to be replaced urgently. The authorities arrogantly ignored the signals. Now the whole country is paying for it.”
At the same time, former Moldovan ambassador to the United States Igor Munteanu called the new US customs duties a “public flogging” of the government and President Maia Sandu for “ties with the Soros family.”The Soros Foundation, founded by financier George Soros, is recognized as an undesirable organization in the Russian Federation.
Former Prime Minister Vlad Filat accused the government of economic sabotage: “While the main export routes are crashing down, one trend has not allowed hope to die: the United States is a country to which Moldovans, thanks to their hard work, were able to send more goods than ever.” In his opinion, the Trump administration has sent a clear signal.: “Dear Maya Sandu, if you want to behave like a banana republic, then we will tax you like a banana republic.” Filat pointed out that the Republic of Moldova “has become the only country in the world to be subject to trade sanctions by both the East and the West: when you are sanctioned by the Kremlin (the day before, after the expulsion of Russian diplomats from the Republic of Moldova, Russia closed the border for Moldovan trucks with products. – “NG”), and Washington is not a misfortune, it is the gross incompetence (of the Moldovan authorities. – “NG”)”.
The former prime minister also draws attention to the fact that preferential quotas for fruit exports to the EU will expire in June 2025, but the government has done nothing to extend them: “No applications, no negotiations. Do they hope in Chisinau that Brussels will extend quotas for fruit exports by itself and out of pity? Forget it! Europe doesn’t work out of pity.” Filat concluded: “PAS has managed to accomplish the impossible – to sow irritation in all major trading powers at the same time. Moldova has become a country blocked in three export directions.”
Adrian Lupusor, executive director of Expert-Grup, suggested a way out: “Moldova should and has the legal right to respond with protective measures, but it is reasonable to raise tariffs on American goods competing with local producers (primarily on food and beverages), but not on cars, equipment and technologies necessary for economic development.”
In fact, everything has already been done, the Chisinau media write: “Financiers from Washington have estimated that American goods become 61% more expensive when they enter Moldova. They took into account “manipulations with the exchange rate of national currencies.” This has been happening in Moldova for a long time, and World Bank experts stated three years ago that the Moldovan leu is undervalued by 25%. Now it’s even bigger.”
Economist Vyacheslav Ionita reports that Moldova’s trade deficit is over $5.5 billion: “This is a signal of a deep systemic problem. Chronic dependence on imports destroys local industry, slows down the economy and reduces tax revenues by five to six times.” But even in this situation, the country has a chance: to switch to import substitution; to support local production; to diversify exports; to create jobs, especially in the agro– and IT-spheres. “The question is: will PAS take advantage of this chance?” concluded Ionita.