When the White House announced a 10% tariff on all products imported from Albania, many in the country breathed a sigh of relief as they fared better than their regional counterparts. However, the medicinal herb sector, which accounts for many exports, is not happy.
Fearing the bankruptcy of many small businesses working in this industry, particularly those growing and processing sage, lavender, chamomile and laurel, the Albanian Medicinal and Aromatic Plant Industry has requested the state step in with a full VAT reimbursement of 10%, compensation for losses due to the exchange rate, and a range of tax deductions for those that work to high-quality standards.
“This is certainly not good news for us at a time when this industry accounts for over 14% of all exports to the EU and America. From the current zero, every shipment to the US will have a customs tariff of 10%, which consequently creates another difficulty for our industry,” said Filip Gjoka, as reported by A2CNN.
Data from the Institute of Statistics shows that the value of exported medicinal herbs to the US was some EUR 51.5 million in 2024, accounting for 1.4% of total exports.
He added that the tariff will also increase the cost of products on the Albanian market, making them less competitive and creating less demand for homegrown products. This would directly affect thousands of farmers and small businesses in rural areas.
“We call on the government, but also the opposition Democratic Party, to exert pressure. Otherwise, our industry will suffer an irreparable blow,” declared Gjoka.
Democratic Party leader Sali Berisha, however, said that every country has US tariffs and said Albania will not impose tariffs on US goods. He added that he is convinced the US will remove the tariff on Albania.
“The DP government, after May 11, will conduct open and transparent negotiations with the US government on tariffs. I am optimistic, as it has been noted that lower tariffs have been applied to Albania and Kosovo than other countries,” Berisha said.
In the region, Albania, Kosovo and Montenegro did get away with just 10% tariffs, while Serbia was slapped with 37%, Bosnia and Herzegovina with 35%, North Macedonia with 33%. The EU and all its member states will face 20% tariffs on products exported to the US.
While Berisha is subject to US sanctions over allegations of corruption and is not allowed to enter the US, he has good relations with Trump and the US right. He even hired Chris LaCivita, senior advisor and co-campaign manager for Donald Trump’s successful 2024 election campaign. His opposition party coalition, Alliance for a Great Albania (with a name that hints at Trump’s famous ‘Make America Great Again’ slogan), is currently second place in the polls, but as a leader, he is in fourth place, behind incumbent Prime Minister Edi Rama, and two independent politicians.
In the run-up to the electoral campaign, he also adopted some rather Trump-esque talking points. These included making abortion and surrogacy illegal (two topics not on the agenda of the public) and plans to introduce a law recognising only two genders: male and female, despite the fact this is already laid down in Albanian law. Neither topic got much attention and were dismissed by many as attempts to ride the wave of Trump’s successful reelection campaign in the US.
In a recent interview, LaCivita was asked if he was lobbying to remove Berisha’s ‘non-grata’ status in the US, to which he responded that it would be “resolved over time”.
While Berisha has made it part of his campaign to cosy up to Trump and side with those impacted by tariffs, Rama has a more laid-back approach. When asked about the trade war with Trump, he responded that the approach is “very simple and comfortable” and there is “no reason to have any concerns.”
Rama may come from the centre-left, the ‘opposite’ of Trump, but he his government has enjoyed a good relationship with him and members of his family.
In January 2025, the Albanian government granted Strategic Investor Status to a proposal put forward by Jared Kushner, Trump’s son-in-law, to turn the uninhabited island of Sazan into a super-luxury resort. The island, situated on the border of the Ionian Sea and Adriatic Sea, just off the coast of Vlora, was once a soviet base, a military zone, and home to a Mussolini mansion. Today, it is deserted, except for a few tourists on boat trips.
Kushner is set to invest EUR 1.4 billion into the project and has promised to create some 1000 jobs. The plan envisages developing 8% of the island (some 45 hectares), as well as building a marina, high-standard residences, luxury accommodations, restaurants, and recreational areas.
But the news did not go down well with some. The public criticised the decision to hand over public property to a private developer and bemoaned that much of the country’s coastline is becoming unaffordable and out of reach due to privatisation. The opposition was mildly disgruntled but, overall, did not oppose the project, stating they expected it to be rolled out in line with the law.
It was clear that in this situation, no one wanted to ruffle the feathers of the incoming Trump administration. Meanwhile, it was a demonstration of good relations developed between Rama and Albania, the US, Trump and his extended family. They were said to have laid the groundwork for further political, economic, and social collaboration in both the public and private sector.
Rama also announced at the end of 2024 that Trump would be visiting Albania during a NATO summit to be held there in 2027. He called it an example of Albania’s strong political position in the international arena.
“We have a modest weight, but today we are treated as equals and with a respect that we have never had in our history,” said Rama.
Albania finds itself navigating a delicate balance between economic challenges and strategic diplomacy as it confronts the US’s 10% tariff and its ripple effects, particularly on the vital medicinal herb sector which employs thousands of voters.
While the nation enjoys a lighter tariff burden than its neighbors, the government’s response to domestic industries will be crucial in sustaining rural livelihoods.
As the 2025 elections approach, the contrasting approaches of Rama and Berisha highlight divergent paths: Rama’s pragmatic cultivation of ties with Trump’s administration, exemplified by Kushner’s Sazan project and a planned 2027 Trump visit, positions him as a steady hand leveraging Albania’s growing global clout. Meanwhile, Berisha’s Trump-esque rhetoric on social issues risks falling flat with voters as these topics lack domestic resonance, and his US sanctions may undermine his credibility despite ties to Trump’s circle.
Post-election, a Rama-led government would likely deepen US collaboration, potentially securing tariff relief but needing to address public discontent over privatisation. However, a Berisha victory, though less likely, would require swift diplomacy to remove non-grata status and ensure stability.
Ultimately, Albania’s ability to translate its “modest weight” into economic resilience and growth will shape its trajectory, with strong US ties proving more fruitful than polarising rhetoric, on either side of the political spectrum.
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