Speaking on RIK's “Proino Dromologio” radio show, Finance Minister Makis Keravnos said the recent developments regarding the United States’ tariff policy are generating significant uncertainty, as they unravel the rules of international trade.

He emphasized that although Cyprus’s economic and trade relations with the US are limited, the broader economic impact on the European Union will be substantial, affecting Cyprus particularly in the sectors of tourism and services.

Keravnos assured that the government is actively assessing all developments and is taking precautionary and timely measures. In this context, a special report has been prepared and will be discussed today during a dedicated meeting at the Ministry of Finance.

“There should be neither panic nor complacency,” he stated.

Finance Minister Keravnos also commented on concerns surrounding the potential introduction of green taxation on fuel. He noted that the government is in continuous consultation with the European Commission, making strong efforts to delay, reduce, or avoid the implementation of such measures.

He stressed that at this stage, claims about an additional €0.06 fuel tax or a gradual increase up to €0.30 are unfounded.

“We are weighing the consequences, as well as the warnings that we have not done enough for the green transition,” he said.

Keravnos also highlighted that the government continues to implement social policies aimed at supporting small and medium-sized enterprises, the middle class, and vulnerable groups.

He reminded the public of the recent decisions to reduce VAT on electricity and apply a zero VAT rate on essential goods.