The European Union is set to impose significantly higher tariffs on Ukrainian imports in the coming weeks, according to a Financial Times report citing diplomatic sources. The move could strain Kyiv’s economy during a critical phase of its war against Russia. The FT reports that the EU’s new proposal, circulated to member states, would severely reduce tariff-free quotas for Ukrainian agricultural goods, a critical source of revenue for the country’s farmers and wartime economy.
In 2022, the EU agreed to a duty-free trade arrangement with Ukraine to support the country’s economy during the full-scale war with Russia and facilitate the export of Ukrainian goods, particularly agricultural products, to international markets.
According to Polish media reports in February, the EU does not intend to renew the current preferential trade agreement with Ukraine beyond its June expiry and is instead exploring alternative regulations. According to the Financial Times, the proposed transition period would sharply cut the duty-free quota for Ukrainian agricultural goods, the country’s main export. The move comes after Polish truckers briefly blocked a Ukrainian border crossing, alleging unfair competition from Ukrainian carriers. Falling shortly before Poland’s presidential election, with the leading right-wing candidate Karol Nawrocki increasingly using strong criticism against Ukraine in his campaign toward Kyiv.