Donald Trump has followed through on his tariff threats, imposing 25% duties on imports from Canada and Mexico and 20% on Chinese goods. The move has already triggered strong reactions from these major U.S. trading partners, raising fears of a global trade war. But what does this mean for Greece?

According to Nikolaos Economides, an economics professor at New York University, the direct consequences for Greece will be limited, as the country exports relatively few goods to the United States. However, he warns that the indirect effects could be more complex and far-reaching.

Direct and Indirect Impacts

Greece does not rely heavily on exports to the U.S. Unlike major European economies such as Germany, France, and Italy, which ship large volumes of industrial goods across the Atlantic, Greece’s export profile is more focused on the EU, said Economides in an interview on Greek ERT tv Therefore, the country is unlikely to experience a direct trade hit from these new tariffs.

However, while Greece itself may not be targeted, the tariffs could disrupt the broader European economy, affecting Greece in more indirect ways. If major EU economies suffer under U.S. trade restrictions, it could reduce demand for Greek goods and services. Additionally, Greece receives substantial financial support from the European Union, which could be at risk if key contributors like Germany and France face economic strain, says Economides.

Another potential consequence is currency fluctuations. Economides suggests that a weaker euro—perhaps influenced by European Central Bank policies—could help European exports remain competitive in global markets. But, if the EU economy slows, it could also affect Greece’s tourism industry, a key pillar of the country’s economy.

A Wider Geopolitical Context

Trump’s broader economic strategy also includes investments in rare earth minerals, a sector where Greece does not play a significant role. However, the geopolitical implications of these moves—particularly in relation to Russia and China—could shape global markets in unpredictable ways.

While Greece may not be at the center of this unfolding trade battle, its economy is closely tied to Europe. As the effects of Trump’s tariffs ripple outward, the country – along with the rest of the world- will be watching carefully to see how its larger trading partners respond.