US Trade Measures May Impact Romania’s Economy

Price hikes and potential punitive measures from the US may affect Romania, particularly industries tied to the American market, according to Alex Milcev, leader of EY Romania’s Tax and Legal Department, CE Report quotes Agerpres

While Romania’s direct trade with the US is limited, Milcev suggests that the broader implications of US trade actions, especially with the EU, could ripple through the Romanian economy. These include price increases on goods imported from the EU and a potential impact on GDP growth and inflation.

A key concern is the US withdrawal from the BEPS 2.0 agreement, which targets corporate profit taxation. This could lead to higher taxes on services from European companies to US clients, affecting sectors like IT, which rely heavily on US business. Milcev warns that such changes could harm Romania’s competitiveness and discourage investment.

Though the immediate effect may seem minimal, Milcev emphasizes that the indirect consequences could be significant, urging Romania to prepare for potential shifts in the global trade landscape.