US President Donald Trump’s announcement of a 20 per cent tariff on imports from the European Union is likely to have a direct impact on locally based manufacturing firms that export electronics and semiconductors to the United States.
Other industries, including some locally based pharmaceutical companies, could also feel the effects of this drastic measure. While some manufacturing companies in Malta could be directly affected, the overall impact on the country’s economy is expected to be limited due to its relatively low export volume to the US.
According to United Nations COMTRADE data, Malta exported $224.18 million worth of goods to the US in 2024, with the majority being electronics and semiconductors. While some pharmaceutical and manufacturing firms may also feel the pinch, Malta’s economic diversification is expected to mitigate broader repercussions.
However, the tariffs – along with Trump’s confrontational approach towards Europe and his isolationist policies – could have indirect effects on the global economy that may impact both Europe and Malta.
On the upside, industry insiders note that certain sectors, such as iGaming, which had long been considering expanding operations into the US, may now reconsider their strategy, potentially reinforcing Europe’s position as a hub for digital gaming firms.
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