US President Donald Trump’s announcement of a 20 per cent tariff on imports from the European Union has raised concerns across the European business community.

While Malta’s manufacturing sector includes firms exporting electronics, semiconductors, and pharmaceuticals to the US, the overall impact on the country’s economy is expected to be limited due to its diversified economic structure and relatively low direct trade volume with the US. 

According to United Nations COMTRADE data, Malta exported $224.18 million worth of goods to the US in 2024, with the majority being electronics and semiconductors. Some pharmaceutical and manufacturing firms that export to the US market may experience disruptions and could potentially be directly impacted, but Malta’s broad economic base, including strong financial services, iGaming, and technology sectors, as well as its booming tourism industry is expected to cushion any negative effects. 

Beyond direct trade concerns, Trump’s broader economic stance – marked by protectionist policies and a confrontational approach towards Europe – could have wider implications for global investment flows as well as the European economy at large. Investors evaluating European markets may need to navigate potential shifts in supply chains, tariffs, and cross-border trade policies. 

Interestingly, Malta and other European countries may find opportunity in this shift. The iGaming industry, for instance, which had been exploring expansions into the US market, may now reconsider such moves. This could reinforce Europe’s – and Malta’s – market share in gaming and fintech investment, as firms opt to consolidate operations within the EU’s more stable regulatory framework. 

As global trade dynamics continue to evolve, Malta’s ability to attract investment lies in its adaptability, strong regulatory framework, and commitment to economic diversification – qualities that remain key for businesses and investors assessing long-term opportunities in the region.