Earlier this month, The Malta Chamber of Commerce, Enterprise and Industry, elected its 73 President. William Spiteri Bailey the previous Vice-President of the Chamber was elected in his new role as President on April 1st. He is an experienced auditor and worked with RSM Malta and PG among other companies, and previously lead the Services Economic group of the Chamber.
Upon being elected, the new Chamber President outlined his vision, stating that he wants to see an innovative, resilient, and inclusive economy driven by an entrepreneurial culture. However, the new President has been elected in a very particular time which will make the implementation of his vision more challenging. William Spiteri Bailey has been elected President of Malta’s Chamber of Commerce during an unprecedented global trade war launched by the US President Donald Trump.
The Maltese Herald asked the new President for his views on the current US tariffs and the ongoing trade war. Here are his answers.
Q: The ongoing and major global economic and financial issue is President Trump’s global tariff war. How do you think will Malta be affected?
A: In 2024, goods exported to the US represented around 5% of all goods exported from Malta, whilst goods imported from the US represented around 3.5%. This shows that the direct impact of the tariffs announced by the US president on the 2nd of April should be rather limited. What is more of concern is the indirect impact. A cursory look at Malta’s Balance of Payments shows that Malta exported some €22.8 billion worth of services in 2024, out of which €14.5 billion was to EU countries. This shows the heavy reliance Malta has on EU economies, especially when it comes to services. The top European countries exporting goods to the US were Germany, Italy, Ireland, France, and the Netherlands. Collectively, these five countries accounted for approximately 70% of the EU’s total goods exported to the US in 2024. If such European economies that export to the US experience an economic slowdown because of these tariffs, this will affect Malta, as a downturn in these markets can lead to reduced demand for Maltese exports, both goods and services.
Q: What mitigation measures should the government have taken or take for Trump’s tariffs?
A: As a member state of the European Union, Malta’s trade policies, including responses to international tariffs, are coordinated at the EU level. This collective approach ensures a unified and effective strategy in international trade matters. Given this framework, it is not possible for Malta to undertake unilateral mitigation measures against the US tariffs. Instead, Malta participates in the EU’s collective response, ensuring that any actions taken are part of a coordinated and unified strategy. Having said that, Malta could decide to take specific measures to assist, in any possible way, industries that are particularly affected by these tariffs.
Q: Would it be a good thing for Malta if it had 0 tariffs with the US?
A: As outlined above, Malta is part of the European Union, and thus Malta’s trade policies, including those related to international tariffs, are coordinated at the EU level. Therefore, Malta cannot simply establish a 0% tariff system directly with the US on its own. However, tariffs are by their very nature, not desirable. So it’s always better to have zero tariffs, and it’s no surprise that the EU proposed a zero-for-zero tariff regime to the US.
Newsroom
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