U.S. Imposing 10% Tariff on San Marino: Businesses Express Concern, Government Carefully Assessing Economic Impact
On April 2, 2025, the United States announced the imposition of tariffs on imports from multiple countries, imposing a 10% tariff on San Marino, which is lower than the European Union's 20%. This move has sparked interest from Italian and EU businesses in using San Marino as an operational base. The San Marino government is assessing the economic impact of these new tariffs and emphasizes a comprehensive evaluation of all possibilities, focusing on sustainability and economic impact.
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04/08 03:11
U.S. Imposing 10% Tariff on San Marino: Businesses Express Concern, Government Carefully Assessing Economic Impact
On April 2, 2025, the United States announced the imposition of tariffs on imports from multiple countries, imposing a 10% tariff on San Marino, which is lower than the European Union's 20%. This move has sparked interest from Italian and EU businesses in using San Marino as an operational base. The San Marino government is assessing the economic impact of these new tariffs and emphasizes a comprehensive evaluation of all possibilities, focusing on sustainability and economic impact.
Background of US Tariff Policy and San Marino's Unique Situation
On April 2, 2025, former President of the United States, Trump, announced a new round of "reciprocal tariff" policy, imposing import tariffs ranging from a minimum of 10% to a maximum of 49% on most global trade partners. According to the US government's calculation method, these rates are derived from factors such as trade deficits with the US and non-tariff barriers. San Marino, along with the UK, was listed as a country with the lowest tariff rate of 10%, highlighting its unique position in US trade policy.
Although San Marino is not an EU member state, it maintains close economic ties with the EU through a customs union and cooperation agreements. The 10% tariff imposed by the US on San Marino is significantly lower than the general 20% rate applied to EU products, creating a potential regional competitive advantage.
Initial Response and Policy Stance of the San Marino Government
In response to the US's unilateral tariff decision, the San Marino Ministry of Foreign Affairs stated that they are currently in the observation and evaluation phase, emphasizing that the policy could still change. The government noted that although San Marino's export scale differs from that of EU member states, the new tariff rate could bring potential advantages that warrant further analysis.
The San Marino government clearly stated that it will closely monitor global trade dynamics and pragmatically assess the potential benefits and risks of the new tariff policy. The government particularly emphasized that the evaluation process will focus on sustainability and the substantial impact on the national economy, considering the close economic ties with the EU and Italy.
Business Reaction and Rising Investment Interest
After the new tariff policy was announced, the San Marino Chamber of Commerce reported receiving numerous inquiries from companies in Italy and other EU member states. These inquiries concern details about US import tariffs and the feasibility of establishing operational bases in San Marino. These companies are mostly in industries significantly affected by the US market and facing high tariff risks, such as manufacturing, machinery, food processing, and high-value-added products.
The Chamber noted that the interest in San Marino mainly stems from its 10% tariff advantage compared to the EU's 20%, potentially making San Marino an alternative export platform for entering the US market. Some companies have already begun evaluating the possibility of setting up branches or relocating part of their production lines to San Marino.
San Marino's Export Structure and Trade Overview with the US
According to San Marino government data, San Marino's total exports, including goods and services, amounted to 3.6 billion euros in 2024, with exports to the US accounting for approximately 54 million euros, or about 1.5%. The main export markets remain concentrated in Europe, particularly Italy and other EU countries.
Although exports to the US are not a large proportion, the San Marino government pointed out that more attention should be paid to the "indirect effects" that may arise from the US imposing tariffs on the EU as a whole, such as the restructuring of European supply chains and changes in trade flows, which could potentially impact or create opportunities for San Marino's economic system.
Government Assessment and Future Action Direction
The San Marino government stated that it will continue to maintain close communication with the business community and, through interdepartmental cooperation, assess how the new tariff policy affects the country's industries, employment, and investment environment. The government will also monitor the progress of trade negotiations between the EU and the US and adjust its policy stance accordingly.
Additionally, San Marino will carefully evaluate whether it is necessary to further strengthen bilateral economic and trade dialogue with the US to ensure that the country's interests remain protected under the new trade order. The government emphasized that any policy adjustments will prioritize maintaining national economic stability and long-term development.
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