US slaps 10% tariffs on Armenia, Azerbaijan, and Georgia

The US has imposed a 10% tax on goods imported from Armenia, Azerbaijan, and Georgia as part of sweeping new tariffs on almost every country in the world.

It came as part of US President Donald Trump’s proclaimed ‘liberation day’, during which he unveiled tariffs of between 10% and 50% on goods imported into the US.

Armenia, Azerbaijan, and Georgia were all hit with the lowest band at 10%.

Trump has repeatedly claimed the tariffs are necessary because America was being ‘ripped off’ by the rest of the world, complaining of large trade deficits with a number of countries.

However, the US enjoys large trade surpluses with Armenia, Azerbaijan, and Georgia, meaning the US exports goods worth more to these countries than those it imports from them.

The trade imbalance was particularly stark for Georgia. According to the Office of the US Trade Representative, in 2024, Georgia imported $1.7 billion worth of goods from America, while exporting just $165 million worth in return.

Neighbouring Russia was one of a handful of countries to be spared entirely. Explaining the decision, White House Press Secretary Karoline Leavitt told Axios that US sanctions already ‘preclude any meaningful trade’ with Russia. However, at $3 billion, Russian exports to the US in 2024 dwarfed those of the South Caucasus.

Trade with the US does not represent a significant portion of the exports of Armenia, Azerbaijan, or Georgia. However, economists have warned a global trade war could spark significant economic pain worldwide.

In a post on Facebook on Thursday, Rovshan Aghayev, an Azerbaijani economist, warned of a high risk of a global economic recession due to the US trade war.

‘If the trade war that has started leads to a global recession, the fall in energy prices and turmoil in financial markets could lead to significant losses,’ Aghayev said.

He warned that because of its dependence on oil and gas exports, Azerbaijan could face significant consequences.

‘In the current conditions, the greatest impact of the global economic crisis will be suffered by countries with undiversified economies, high dependence on commodity revenues, and primitive production structures,’ he wrote.

‘Everyone should have worst-case scenario plans on their desk and in front of them,’ he added.

Additional reporting by Aytan Farhadova.