Levan Davitashvili, Georgia’s Vice Prime Minister and Minister of Economy and Sustainable Development, stated that despite the recent imposition of U.S. tariffs on Georgian exports, the country has been acknowledged as a friendly nation and is benefiting from a reduced tariff rate of just 10 percent.
In an interview with Rustavi 2 TV, Davitashvili highlighted that if these new U.S. tariff policies become a lasting framework and attract investor attention, Georgia could see a boost in foreign investment.
“This is an important development that warrants close attention,” he said. “The United States has introduced a new tariff policy that affects all countries, including Georgia. However, it has singled out certain friendly nations—Georgia among them—to receive the lowest tariff rate of ten percent. While this does mean a tariff now applies to our exports to the U.S., the rate is notably lower compared to others.
Looking at our trade portfolio with the U.S., we export roughly $150 million in goods, with over 60 percent made up of ferroalloys. These products are exempt from the new tariffs, meaning this sector remains unaffected. For other goods that are subject to the 10 percent tariff, the additional cost is around $4 million—an amount that is statistically minor.
Some economists suggest that this could even present opportunities. For example, products like wine, which fall under the 10 percent tariff, could gain a competitive edge. The U.S. imports a large volume of wine from both Europe and New World producers. In this setting, a combined tax of 14 percent (the 10 percent tariff plus an existing 4 percent duty) is still favorable when compared to the 30 percent tariffs placed on imports from certain other countries. This could encourage greater Georgian wine exports to the U.S. If the tariff structure remains consistent and attracts investor confidence, Georgia may well see increased investment,” Davitashvili explained.
