The EU intends to increase tariffs on Ukrainian imports and has suggested an interim solution until a trade agreement is updated.

The EU aims to impose higher tariffs on Ukrainian products entering its market after June 5, when the current duty-free trade arrangement will end. The Ukrainian government estimates that reverting to pre-war trade conditions could lead to a loss of about €3.5B in annual revenue. While the EU has a free trade agreement with Ukraine, it had temporarily suspended tariffs on Ukrainian goods after Russia’s invasion in 2022.

Brussels plans to implement “transitional measures” after June 5 until a permanent trade deal is established. The decision to restore tariffs was influenced by Poland’s initiative to safeguard EU farmers’ interests. Currently, Ukraine is permitted to export a specific quantity of goods to the EU without duties for a year.

A proposed transitional measure would segment this annual quota into 12 portions – one for each month – allowing Ukrainian imports to be spread evenly across the year. This adjustment will significantly impact the sales of corn, sugar, honey, and chicken.