EditSerbia eyes free trade agreement with the United States
With Donald Trump in the White House, Washington warms up relations with Belgrade
Serbian politicians and businessmen are actively pursuing a free trade agreement (FTA) with the United States, signaling a potential shift in economic relations. Since Donald Trump’s return to the White House, Washington’s stance toward Serbia has grown notably warmer compared to the Biden administration, which prioritized Belgrade’s recognition of Kosovo as a condition for improved ties.
On 26 April, Serbian President Aleksandar Vucic hosted a dinner in Belgrade for Donald Trump Jr., who visited as part of a regional tour. The meeting, attended by key Serbian business leaders, underscored the growing focus on strengthening economic and political ties between the two nations.
During his recent visits in the region, Trump Jr. received a less prominent reception in EU members Romania and Bulgaria, whose economies are integrated into the EU single market, compared to Serbia, a country still far from EU membership.
On 2 April, Trump announced a 37% tariff on all Serbian exports to the United States, effective 9 April. This was one of the highest rates in the Balkans, surpassed regionally only by a few countries globally, such as Lesotho (50%) and Cambodia (49%). At that time Vucic emphasized the need to negotiate with the U.S. to align Serbia’s tariffs with the EU’s 20% rate, warning that the 37% tariff renders Serbian products uncompetitive.
The Serbian Chamber of Commerce described the talks as an “excellent and open discussion.” Chamber President Marko Cadez noted that 33 business leaders and company directors, representing firms employing over 35,000 people, participated. The conversations centered on key sectors such as tourism, information technology, agriculture, and manufacturing, with a strong emphasis on exploring a transformative FTA.
Economic opportunities and strategic implications
A US-Serbia FTA could significantly boost bilateral trade, which reached approximately $800 million in 2024. By reducing tariffs and trade barriers, the agreement would enhance export opportunities and attract investment in critical industries. For Serbia, an FTA with the US would complement its EU membership candidacy while positioning the country as a gateway to the Western Balkans, a region of growing interest to global investors, Serbian media wrote.
Serbia’s Stabilisation and Association Agreement (SAA) with the EU, effective since 2013, requires alignment with EU trade policies but allows bilateral FTAs with non-EU countries, such as those with China (2023), Turkey, and the Eurasian Economic Union (EAEU, 2021). A U.S. FTA, if structured to comply with World Trade Organization (WTO) rules and SAA obligations (e.g., rules of origin, tariff schedules), would not inherently conflict with EU accession. EU members like Romania and Bulgaria maintain strong U.S. trade ties without issue.
But as the devil is in the details, certain aspects of such an FTA could complicate Serbia’s EU integration if they conflict with EU trade policies or signal a geopolitical shift away from European alignment.
An unnamed Serbian businessman, quoted by BETA Agency, highlighted the transformative potential of the agreement, noting its capacity to unlock new economic opportunities for both nations. The involvement of Trump Jr., a prominent figure in business and political circles, reportedly adds weight to the initiative, signaling high-level interest in deepening ties.
Beyond economics, the FTA carries geopolitical significance. It could strengthen Serbia’s alignment with Western economies amid complex regional dynamics, particularly in the context of its delicate balancing act between EU aspirations and historical ties with non-Western powers.
Next steps and challenges
Trade relations between the United States and Serbia are modest but growing, with bilateral trade valued at approximately $800 million in 2024.
The U.S. primarily exports machinery, vehicles, and agricultural products to Serbia, while Serbia exports steel products, automotive parts, and agricultural goods to the U.S.
U.S. companies have shown increasing interest in Serbia, particularly in technology, manufacturing, and energy sectors. Serbia’s strategic location in the Western Balkans makes it an attractive hub for investment.
Donald Trump’s son-in-law Jared Kushner has been given permission in 2024 to sign a contract with the Serbian government to build a luxury hotel in the capital Belgrade. It will reportedly be located on the site of the former Ministry of Defense, which was destroyed by NATO bombing in 1999.
While no official timeline for the FTA has been announced, further discussions are expected to involve government officials, trade experts, and business leaders from both countries. The Serbian businessman who met with Trump Jr. is reportedly working to facilitate high-level talks to advance the proposal. Key challenges include aligning trade policies, addressing regulatory hurdles, and ensuring mutual benefits for both economies.
Analysts suggest that the agreement could reshape Serbia’s economic landscape while providing American businesses with access to a strategic market in Southeast Europe. As stakeholders move forward, the focus will likely remain on fostering collaboration in high-potential sectors and navigating the complexities of international trade negotiations.
Edited by g.g.
Updated: April 30, 2025 - 15:03
