U.S. Temporarily Eliminates the 35% Tariff on Serbian Goods — Potential Implications for Chinese Manufacturers in Serbia, Export Arrangements and Global Supply Chain Strategy

July 28, 2026
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Publication Date
27 July 2026		Issued by
Kopilovic & Kopilovic Law Firm
KEY TAKEAWAY  On 24 July 2026, the President of Serbia announced that the 35% special tariff previously imposed by the United States on goods originating in Serbia had been temporarily reduced to 0%. This is a transitional measure during ongoing negotiations, and the future rate may be adjusted to approximately 10%-12%. As of the publication date of this alert, companies should continue to await detailed implementing documents from the relevant U.S. authorities.

AT A GLANCE

  • This change does not mean that all U.S. import duties have been eliminated; goods may remain subject to the ordinary rates set out in the U.S. customs tariff schedule.
  • Steel, aluminium, copper, automobiles, automotive parts and other products may remain subject to separate sector-specific tariffs or other trade measures.
  • Chinese companies operating in Serbia should prioritise verification of product origin, HTSUS classification, production processes and supply-chain evidence.
  • The 0% rate creates an opportunity to reassess U.S. market orders, pricing and capacity planning, but should not be regarded as a permanent policy.

LATEST POLICY DEVELOPMENTS

According to reports published by Radio Television of Serbia (RTS) and other media on 24 July 2026, Serbian President Aleksandar Vucic stated that the 35% additional tariff previously applicable to Serbian goods would be temporarily reduced to 0% from that evening. He also indicated that, at a later stage, the rate might be set at approximately 10%-12%.

Reuters also reported the statement and noted that the measure had affected Serbian companies in the automotive, agricultural, machinery, metals, manufacturing and defence sectors. It should be noted that the publicly available information currently derives primarily from announcements by the Serbian authorities. Before making customs declarations, companies should verify the official implementing documents issued by U.S. Customs and Border Protection (CBP), the Office of the U.S. Trade Representative (USTR), or other competent authorities.

TARIFF CHANGE TIMELINE

Previous ArrangementCurrent Transition PeriodPossible Future Arrangement
35%
Special tariff previously imposed		0%
Temporarily applicable during negotiations		10%–12%
Not yet finally determined

WHAT DOES “0%”ACTUALLY MEAN?

IMPORTANT QUALIFICATION  More precisely, the previously imposed 35% special additional tariff has been temporarily reduced to 0%. This does not mean that all duties on Serbian goods entering the U.S. market have been abolished.

Specific products may still be subject to the following duties, charges or regulatory measures:

  • ordinary most-favoured-nation rates under the Harmonized Tariff Schedule of the United States (HTSUS);
  • sector-specific measures applicable to steel, aluminium, copper, automobiles, automotive parts and other products;
  • anti-dumping duties, countervailing duties and other trade-remedy measures;
  • import restrictions relating to forced labour, sanctions, export controls, product safety or intellectual property; and
  • the risk of additional duty assessments, penalties or detention of goods arising from origin determinations, transshipment or insufficient processing.

BILATERAL TRADE DATA: CONTEXT

According to the U.S. Census Bureau, trade in goods between the United States and Serbia in 2025 was as follows (USD million):

U.S. Exports to Serbia
213.7		U.S. Imports from Serbia
944.2		U.S. Trade Balance
−730.5

Note: Nominal values, not seasonally adjusted. Components may not add to totals due to rounding. Source: U.S. Census Bureau.

DATA OBSERVATION  In 2025, U.S. imports from Serbia were approximately 4.4 times the value of U.S. exports to Serbia. This trade structure helps explain the continuing U.S. focus on bilateral market access, non-tariff barriers and origin issues. It also means that exporters to the United States should pay particular attention to classification, valuation and supply-chain documentation.

POTENTIAL IMPACT ON MANUFACTURERS IN SERBIA

Illustration: Modern automotive-parts manufacturing

Serbia has developed into an important manufacturing base serving European and other international markets. The U.S. Department of Commerce identifies automotive, machinery, mining, energy and agriculture as important Serbian industries, and notes that Serbian exports include automobiles, base metals, machinery, chemicals, tyres, apparel and pharmaceuticals.

For companies manufacturing in Serbia and selling to the United States, the temporary reduction of the 35% additional tariff to 0% may improve price competitiveness and order viability, while creating room to reassess U.S. customers, capacity utilisation and logistics routes.

POTENTIAL POSITIVE EFFECTS

  • lower additional tariff costs for certain goods of Serbian origin entering the U.S. market;
  • improve the short-term competitiveness of Serbian production facilities relative to other export locations;
  • create an opportunity to renegotiate U.S. customer orders that were suspended or postponed;
  • increase flexibility in pricing, delivery and global capacity allocation; and
  • send a positive signal to potential investors that Serbia continues to improve access to the U.S. market.

FACTORS REQUIRING CAREFUL ASSESSMENT

Commercial Opportunities

Reprice and reactivate orders
Assess new U.S. customers
Optimise Serbian capacity utilisation
Adjust export and logistics routes		Legal and Compliance Risks

Policy remains temporary
Uncertainty in origin determinations
Sector-specific tariffs may continue to apply
U.S. implementing documents remain to be verified

SPECIAL NOTE FOR CHINESE COMPANIES IN SERBIA

Companies should not determine eligibility for treatment as Serbian goods solely by reference to the final place of production. U.S. rules of origin may examine the source of raw materials, key components, production processes, value composition and whether a “substantial transformation” has occurred. Where only simple assembly, packaging, labelling or transshipment takes place in Serbia, the products may still be regarded as originating in another country.

COMPLIANCE PRIORITY  Companies are advised to prepare a complete origin evidence package for each product category intended for export, including bills of materials, supplier information, production flow charts, cost structures, processing records, quality-control records and factory photographs.

FIVE ACTIONS COMPANIES SHOULD TAKE NOW

  1. Confirm tariff classification |Confirm the HTSUS code based on the product’s technical specifications and use, and verify ordinary duties, sector-specific tariffs and other additional measures.
  2. Complete an origin analysis |Review raw materials, key components and production processes and, where appropriate, consider applying for a binding ruling from U.S. Customs.
  3. Conduct multi-scenario modelling |Model costs, gross margins and pricing flexibility using rates of 0%, 10%, 12% and any applicable sector-specific tariff.
  4. Review commercial contracts |Review Incoterms, allocation of tariff costs, price-adjustment mechanisms, policy-change provisions, termination rights and delivery-delay clauses.
  5. Monitor official documents continuously |Before customs clearance or making long-term commitments, verify official announcements, effective dates, exemptions and declaration codes issued by the competent U.S. authorities.

CONTRACT AND SUPPLY-CHAIN REVIEW CHECKLIST

Review ItemKey QuestionRecommended Outcome
Product ClassificationIs the HTSUS code consistent with the product’s technical documentation?Prepare written classification support
OriginDoes processing in Serbia constitute a substantial transformation?Prepare an origin evidence package
Tariff AllocationWill the buyer or seller bear additional duties?Clarify Incoterms and duty provisions
Price AdjustmentDoes a change in tariff rate trigger a price adjustment?Set a clear formula and notice period
Delivery ArrangementsCan policy changes justify delaying or cancelling orders?Strengthen force majeure and change-in-law clauses
Supply ChainIs there a risk that the arrangement may be viewed as transshipment or tariff circumvention?Document actual production and logistics routes

HOW OUR FIRM CAN ASSIST

Kopilovic & Kopilovic Law Firm has extensive experience advising international investors and manufacturing companies investing and operating in Serbia, including Chinese companies in the automotive-parts, machinery, electronics, new-energy and other industrial sectors.

  • foreign investment, company incorporation and corporate structuring;
  • legal support for manufacturing-project implementation and day-to-day operations;
  • review of commercial contracts, sales terms and supply-chain arrangements;
  • employment matters, corporate compliance and regulatory communications; and
  • coordination with customs advisers, trade consultants and U.S. counsel on product classification and origin analysis.


 SOURCES AND FURTHER READING

The following materials were used to verify the policy developments, trade data and industry background referred to in this alert. For customs declarations, the laws and implementing guidance then in force and issued by the competent U.S. authorities should prevail.

•  Radio Television of Serbia (RTS) | 24 July 2026
Vucic: U.S. temporarily eliminates tariffs on Serbian goods; future rate may be 10% or 12%

•  B92 | 24 July 2026
U.S. 35% tariff on Serbian goods temporarily reduced to 0%

•  Reuters report (republished by Investing.com) | 24 July 2026
U.S. to eliminate 35% tariffs on Serbian goods, Vucic says

•  U.S. Census Bureau | 2025 bilateral trade-in-goods data
U.S. trade in goods with Serbia

•  U.S. Department of Commerce, International Trade Administration | 2 December 2025
Serbia – Market Overview

•  The White House | 31 July 2025
Further Modifying the Reciprocal Tariff Rates

•  The White House | 1 June 2026
Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper

DISCLAIMER

LEGAL NOTICE  This alert is provided for general informational purposes only and does not constitute legal advice or a formal legal opinion. It reflects publicly available information as of 27 July 2026. Tariff, origin, customs and other regulatory arrangements may change as a result of policy developments, negotiations or enforcement practice. Before making export, investment, pricing or supply-chain decisions, companies should obtain professional advice based on the specific product, tariff classification, origin and transaction structure.

KOPILOVIC & KOPILOVIC LAW FIRM

Legal support for international companies investing and operating in Serbia

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