Malta offers tepid response to Trump’s tariffs amid unclear government strategy

Malta had a trade deficit of almost €70 million with the US last year having imported more goods than it exported across the Atlantic Ocean, official figures show.

Malta sent €272.5 million worth of goods to the US, accounting for just over 5% of the €5.1 billion in exports recorded last year, according to the National Statistics Office

Consequently, imports from the US totalled €342.2 million, less than 4% of Malta’s €9.7 billion import bill.

These figures suggest the US is not a major trading partner for Malta, which may explain the lukewarm reaction the Maltese government had when US President Donald Trump announced a 20% customs duty on imports from the EU.

Amid an impending global trade war, while several EU leaders had strong words of criticism at the US’s decision, the Maltese government shifted the onus of responsibility on the EU.

Prime Minister Robert Abela: Government has so far offered a tepid response to the Trump administration's imposition of tariffs (File photo: OPM)

“Trade negotiations of all EU Member States are entrusted to the European Commission, as clearly outlined by the President of the European Council, António Costa,” a spokesperson for Prime Minister Robert Abela told Times of Malta last Thursday.

No other official response was forthcoming with government sources telling MaltaToday ministers were instructed to channel any queries through the Office of the Prime Minister.

Malta’s tepid response to the US tariffs would appear a continuation of what sources in the administration believe is an unofficial appeasement strategy adopted by government towards the Trump administration.

Nonetheless, last year, exports from Malta to the US went up by €146 million over the previous year, the largest increase across the board, according to the NSO.

A breakdown of trade statistics shows that exports to the US were made up mostly of electronic integrated circuits under the manufacturing category. But a significant export, valued at €127 million, was in the category comprising powered aircraft such as helicopters, aeroplanes, spacecraft and satellites under the transportation and storage category.

Imports from the US were dominated by petroleum gas and other hydrocarbons, aircraft parts, electronic equipment and electrical apparatus.

The 20% customs duty would make Maltese exports more expensive in the US with the risk of American consumers seeking cheaper alternatives. Consequently, depending on the EU’s response, imports from the US would become more expensive for domestic consumers, including companies.

Opposition leader Bernard Grech described the US tariffs as a “step back for everyone” in a message posted on X. He added that he expected the Maltese government to adopt a “strong stand” to defend consumers and industry.

“We stand with our EU partners in a united response, seeking negotiated solutions first but ready for a rapid response in kind,” Grech continued.

Opposition leader Bernard Grech criticised government's lack of forward thinking to mitigate US tariffs (File photo: PN)

After the government’s muted response, the Opposition leader was unforgiving in his reaction. “We knew Trump’s tariffs were coming. We should have had impact assessments, contingency strategies, new trade partnerships to fill any gaps. But Robert Abela’s best answer is that it’s Brussels’ problem. This is not the leadership Maltese businesses and employees need,” Grech said.

Trade statistics show that the EU remains the single-most important trading partner for Malta in both exports and imports, followed by Asia.

However, despite the relatively low level of trade between Malta and the US, the impact of tariffs is likely to have a disproportionate effect on particular sectors such as aviation and electronics.

It is unclear so far whether the Maltese government is planning any mitigation measures but the OPM spokesperson hinted at this. “Businesses and families in Malta understand that government has consistently provided protection and support, ensuring stability and mitigating the impact of global challenges,” the spokesperson said without providing detail.

EU Trade Commissioner Maros Sefcovic has said US tariffs are 'damaging and unjustified'

Meanwhile, markets across Europe tumbled on Friday as China retaliated with a 34% import tariff on US goods.

EU Trade Commissioner Maros Sefcovic said on Friday he held a two-hour call with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer.

“I was clear: US tariffs are damaging, unjustified,” Sefcovic said in a post on social media platform, X. “The EU’s committed to meaningful negotiations but also prepared to defend our interests.”

The European Commission is preparing a counter response to US tariffs as French President Emmanuel Macron called on French companies to pause planned investments in the US.