Will the US trade wars affect financial aid to Ukraine?

The United States, under the leadership of Donald Trump, has already launched so-called trade wars with its largest partners. The EU is also likely to have to face the US in the trade arena. Ukraine may also be affected by these developments. This time, on the economic front.

Novyny.LIVE analyzed how the US trade wars will affect Ukraine.

The effect of US trade wars on Ukraine

The US trade wars will definitely not have any positive consequences for Ukraine, quite the opposite. The gap in economic relations between the US and China could play into Russia’s hands, as Beijing is more likely to want to strengthen cooperation with Moscow. This could manifest itself in the lifting of sanctions against Russia or even in an increase in China’s military support for Russia.

In addition, countries involved in the US trade wars may lose revenue. This is likely to affect financial support for Ukraine. It was stated in his comment to Novyny.LIVE by the former Advisor to the President of Ukraine on Economic Affairs Oleh Ustenko. He noted that with reduced revenues, financial support for Ukraine at the same level will cause an increase in the budget deficit.

"And this, in turn, will push countries to save money. And this will be dangerous for Ukraine. We are highly dependent on financial support from the EU. In 2025, we plan to receive €30 billion from the EU," Ustenko emphasized.

And it is not only this that could become an issue for Ukraine. Countries are likely to be forced to compensate for the difference in exports due to the exchange rate. Andrii Shevchyshyn, the financial analyst, explains that this could accelerate the devaluation of the UAH.

"I expect the USD to strengthen against global currencies. This process will affect the UAH as well," Shevchyshyn thinks.

At the same time, Ukraine will have the opportunity to occupy the vacant niches in the global markets. However, this will require establishing domestic production. And the end of the war may be the impetus for this.

Earlier, the United States imposed additional duties on imports from Canada, Mexico, and China. The new rules came into effect on February 4. 

The UK government is working to offer President Donald Trump a deal. It should help the country to avoid economic restrictions from the United States.