Trump ''throws'' Albanian medicinal plants - How will the 10% tariff affect trade with the US?
Following President Donald Trump's announcement that the US will impose tariffs on imports from all countries in the world, including Albania, Kosovo and other Western Balkan countries, it seems that the 10% tariff on our country will have an impact on exports. The US is Albania's fifth largest partner in terms of import value, with tariffs currently below 10% from Albania.
Exports reached a value of 7 billion lek in 2024, making the US the 13th largest partner in terms of Albanian exports.
But how will Trump's new executive order, which will take effect on April 5, affect companies exporting medicinal plants? In an interview with journalist Alida Lula, the president of the Association of Medicinal and Aromatic Plants, Filip Gjoka, said that this industry accounts for 13% of Albanian exports.
Mr. Gjoka, what is the impact of the 10% tariff on companies exporting Albanian medicinal and aromatic plants to the US?
"We had thought that there would be no impact on Albania and Kosovo, or countries that have not yet become part of the EU. Today we will have a conversation with importers, our partners from this country, where we have been cooperating for 30 years, and we will also see the impact of import costs on this tax introduced by the US Department."
As a representative of companies exporting aromatic and medicinal plants, how much do you currently export to the American market and at what tariffs?
"There are thousands of tons that go to the American market, like sage, or other plants. The tax that importers have paid has been lower than countries like China, Brazil, etc., but until now, the "Obama" policy that had been decided for countries with per capita income below 12 thousand USD per year, favored these countries. With the imposition of this tax, we again remain optimistic, because comparing it with China and other countries with new tariffs, we are interested in partners buying better containers from Albania, than China or other Latin countries."
How many Albanian companies are exporting from this industry to the US?
"We have been growing like "mushrooms" for a small country like Albania, we have reached 38 exporting companies, starting with one truck and then with dozens of trucks. There are 3-4 exporting companies for the American market, as although some seek to penetrate this market, the quality has increased and the competition is greater than towards the EU market, because towards America it has its own difficulties and sufficient capital is needed."
Where is the demand of the American market most oriented? What is preferred more, is sage still at the top?
"We continue to maintain the first place in terms of sage exports, despite the fact that Turkey, Poland and Ukraine have recently been competing with us. We also continue to be present with balsam, 1000-leaf sage, cranberry, black juniper, essence, etc. From year to year, demand has increased, but also the demand for quality is increasing, where we hope that with the opening of EU funds this year after the elections, it will give us the opportunity for many companies that need to increase conditions and quality, as well as expand capacities, to make it possible for us to be more competitive with Poland, North Macedonia, Egypt, but also with other countries. We are among the 25 countries in the world that are included in the diversity and value of export quantities to the US and Europe."
And under these conditions, with Trump's new executive order coming into effect on April 5, what will be the next step for this industry?
"We will continue with our requests to the central government to increase support for this industry, as they account for 13% of Albania's exports of medicinal plants and there is a possibility to increase them, if there is attention and subsidies for plant cultivation, as residents are leaving rural areas, and this provides room for expansion and growth of Albania's herb and spice industry," Gjoka tells SCAN TV.
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