Ukrainian sunflower oil and honey may become more popular in the US despite higher tariffs

Ukraine exported $870 million worth of products to the US in 2024. This is more than in 2023, as logistics have become better.

Deputy Minister of Economy and Trade Representative of Ukraine Taras Kachka said this in an interview with Economic Truth.

“41% of our exports to the US last year were cast iron. Cast iron is a specific product: if our metallurgical plants are working well, then we export less cast iron, because it is a universal (semi-raw material. — Ed.). Perhaps we will export even more cast iron if there is more steel production in the US due to the steel tariffs that were introduced on March 12,” he predicted, noting that the tariffs are 25%, not 10%.

Next on the list of Ukrainian exports to the US is sunflower oil.

“This is also not the largest sales market, unlike India or the European Union, but we sold it there for $40 million. There may also be an interesting story with sunflower oil, because Indonesia and Malaysia, which are suppliers of palm oil, were subject to higher duties. Therefore, there may be some rebalancing when there will be even greater demand for Ukrainian sunflower oil,” Taras Kachka explained.

Also, 16% of all Ukrainian honey exports went to the USA.

“In 2024, we sold honey there for over $20 million. The demand for our honey is very high, we are one of the leaders. Demand will remain here or there will be some replacement. The largest supplier of honey in the world is China, but their duties are higher than for us,” the trade representative added.

At the same time, he noted that Ukraine is one of the global leaders in the production of bottle caps. There is a manufacturer that has global contracts all over the world. A lot was exported to the US.

“This is a business where even a one percent increase in cost can ruin everything. And there are many such examples. For the state, it may not be noticeable, but for a small company, losing a market of $100 thousand can be a blow,” he concluded.

Tags: honey, Ukraine, sunflower oil, USA