SOFIA – Deputy Minister of Economy and Industry Doncho Barbalov emphasized the significance of trade agreements between the European Union (EU) and the USA for Bulgaria, particularly in the automotive industry, standardization, and artificial intelligence, in a statement to BTA.
He referred to a joint statement from the EU and the USA regarding an agreement made between European Commission President Ursula von der Leyen and US President Donald Trump on July 27.
Barbalov pointed out a notable development concerning the resolution of tariffs on cars and motor vehicles exported from the EU to the USA.
Currently, these tariffs exceed 25%, but the joint statement indicates they could be reduced to 15% when the EU initiates legislative changes to exempt certain American agricultural products from tariffs, Barbalov noted.
He mentioned that if this legislative process begins in August, it could lead to lower tariffs on EU car exports to the USA. This decision would indirectly impact Bulgaria, as many local companies manufacture parts for EU automotive producers that are sold in both Europe and the USA.
The EU and USA statement also highlighted efforts to achieve mutual recognition regarding cybersecurity agreements, a significant global concern, according to Barbalov.
Additionally, he commented on the EU’s commitment to purchasing American products, including a planned acquisition of artificial intelligence chips worth $40 million, highlighting this as a key development area for Bulgaria. Investments in AI technology are expected to bolster this growth.
Barbalov explained that the additional 15% tariffs on European imports to the USA, effective September 1, will not be additional for the EU. If an existing tariff was at or below 15%, it will now be set at 15%; if it was higher, it will remain unchanged. For other countries, the additional tariff will be applied to existing rates, which is advantageous for EU producers.
Bulgaria has consistently voiced concerns regarding steel, copper, and aluminum during these discussions. The agreement includes a commitment to establish a joint protective mechanism against dumping imports, which the EU is actively pursuing, with discussions on potential quotas that could benefit Bulgarian producers as well.
While risks for the Bulgarian economy persist, Barbalov acknowledged that the EU-US agreement provides clarity, which is crucial for businesses to understand applicable rules and respond appropriately.
At the Ministry of Economy and Industry, efforts are underway to collaborate with Bulgarian businesses and foreign trade entities to mitigate the negative impact of these tariffs on affected industries, Barbalov added. (21.08.2025)
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