Yiannis Ioannou
Former U.S. President Donald Trump’s dramatic declaration of a “Liberation” Day”, marked by the sudden imposition of 20% tariffs on imports from the European Union, as well as from Japan, India, Switzerland and China, has sent shockwaves across global markets and ignited fresh fears of a prolonged U.S.-Europe economic standoff. For many, the move signals a return to American economic isolationism not seen since the 19th century.
In Cyprus, the timing of the announcement hasn’t gone unnoticed. Trump’s tariff declaration coincided almost exactly with President Nikos Christodoulides’ official U.S. tour to promote investment, an overlap seen as especially unfortunate by local observers. The trip, months in the making, was meant to build on the government’s efforts to deepen strategic ties with Washington. Those efforts date back to Christodoulides’ landmark White House visit just before Biden’s crushing election defeat at Trump’s hands.
Investments vs. Instability
Despite the awkward timing, the President’s trip, with stops in New York, Silicon Valley, and Texas, remains critical to the government’s investment agenda. Particular emphasis was placed on energy diplomacy, with meetings in Houston between the Cypriot delegation and top executives at U.S. energy giants ExxonMobil and Chevron. These discussions are key to advancing Cyprus’ offshore natural gas ambitions, including progress on the Aphrodite field and ongoing exploration at Block 5, where the "Electra" drilling target shows early promise.
Back home, the optics of the tour were questioned by some political figures. DISY MP Averof Neophytou voiced concerns about the potential fallout from Trump’s tariffs, warning of ripple effects on the Cypriot economy and suggesting the government’s timing might backfire. The visit has already become a topic in Cyprus’ internal political debate, especially in the context of the Christodoulides administration’s strongly pro-Western positioning and its repeated push to elevate U.S.-Cyprus ties.
A Calculated but Risky Push
Even as global markets react nervously to Trump’s latest outburst, the Cypriot government is pressing forward with its U.S. outreach. Officials are targeting investment in key sectors: shipping, energy, exports, and tech start-ups, though critics argue there’s a risk of favoring public relations over real substance.
Energy remains the centerpiece. The face-to-face meetings with Exxon and Chevron are especially crucial as Cyprus prepares for possible breakthroughs. Exxon's exploration at the Electra site in Block 5 is running slightly behind schedule due to technical complications from deepwater pressure, but early signs suggest the area could hold a major hydrocarbon deposit, similar in type to Egypt’s massive Zohr field.
Meanwhile, Chevron continues working on development plans for the Aphrodite field as Cyprus eyes broader export routes. A trilateral agreement and memorandum of understanding (MoU) with Egypt are in the works, setting the stage for natural gas from Cyprus’ Exclusive Economic Zone (EEZ) to flow to Egyptian LNG facilities, specifically the Zohr and Damietta terminals, by 2027. Block 6, located closer to these infrastructures, is likely to be tapped first, with the "Kronos" discovery offering a potential springboard for future exports.
Delays, But Expectations Remain High
Back in Block 5, the drilling delay at the Electra site is expected to be brief. Initial results, previously expected by the end of March, are now anticipated in mid-April, with a full picture likely to emerge by May. Government officials remain cautious in their public statements, pending formal updates from Exxon, though energy insiders suggest the potential for a major find is real, if still unconfirmed.
All of this plays out against the backdrop of Trump’s tariff war, creating an unpredictable environment for international cooperation. But for the Christodoulides administration, the trip is as much about sending signals as sealing deals: a show of intent that, even in times of geopolitical turbulence, Cyprus is committed to strengthening its strategic partnership with the United States.
*This article was translated from its Greek original.
