A Year after Introduction of Higher US Tariffs, Effect on Bulgaria Is Largely Indirect – Analysis 2026

Balgarianovinite.com One year after the administration of US President Donald Trump imposed higher tariffs on imports from the European Union, the impact on Bulgaria remains largely indirect, according to an analysis by Coface made public Friday. The report, marking a year of continued transatlantic trade tensions, says the effects on Bulgaria have been transmitted mainly through weakening external demand and mounting pressure on European supply chains, in which the Bulgarian economy is deeply integrated.
According to the analysis, the strongest impact has been felt in industrial sectors such as machinery manufacturing, metals and automotive components, where Bulgarian companies operate primarily as subcontractors for larger European producers.
“The tariffs were not so much a direct shock for Bulgaria as a factor that worsened an already tense external environment through weaker exports, lower industrial activity in Europe and increased uncertainty for businesses,” said Plamen Dimitrov, manager of Coface Bulgaria.
As a highly open economy integrated into the European Union’s manufacturing and export chains, particularly those linked to markets such as Germany and Italy, Bulgaria is sensitive to any deterioration in external demand, the company said.
Coface noted that higher tariffs on European exports to the United States have reduced the competitiveness of EU companies, leading to fewer orders for suppliers, including Bulgarian enterprises. Sectors such as engineering, metallurgy and automotive manufacturing, which are strongly represented in Bulgaria, have been particularly affected.
At the same time, the redirection of global trade flows and stronger competition from third countries, especially in Southeast Asia, have increased pressure on prices and profit margins for Bulgarian exporters. This comes on top of rising costs for raw materials and industrial components already affected by tariff restrictions and supply chain disruptions.
As a result, although Bulgaria is not among the United States’ major direct trading partners, the tariffs have affected the country through a weaker external environment, greater uncertainty and increased pressure on industrial sectors, limiting export potential and investment activity, the report concluded.
Coface’s broader global analysis found that most of the costs associated with increased U.S. tariffs have been absorbed by American companies themselves. The company’s macroeconomic team also observed that most exporters to the U.S. have managed to maintain their profit margins, contradicting expectations that they would significantly cut prices to preserve market share.
The report also highlighted a sharp rise in raw material costs in sectors heavily affected by the tariff policies. By the end of 2025, production-cost inflation had reached 20% in metallurgy, 9% in household appliances, 8% in the automotive sector, 6% in machine tools and textiles, and 5% in electronics. In many of these sectors, gross margins have either stagnated or declined, the analysis said.
According to Coface, the trade war is far from over. A Year after Introduction of Higher US Tariffs, Effect on Bulgaria Is Largely Indirect – Analysis 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-05-15 08:01:23 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law