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US Weighs Zero-Tariff Trade Zone With Ukraine in Major Postwar Recovery Signal
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![Photo of Vlad Litnarovych]( "Photo of Vlad Litnarovych")
Ukraine could secure a tariff-free free trade zone with the US once the war ends—a move that could significantly accelerate the country’s economic recovery, according to Steve Witkoff, a US special envoy on the Ukrainian Breakfast event during the Davos forum on January 22.
Witkoff said the idea has been discussed at the highest levels in Washington and could fundamentally reshape Ukraine’s postwar outlook.
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“President talked about creating a tariff-free zone for Ukraine, which I believe would be a game-changer. You will see industry start moving into the region en masse. Imagine having a competitive advantage because you don’t pay tariffs when exporting goods to the US,” Witkoff said.
He added that Ukrainians deserve an end to the war and emphasized that significant efforts are currently underway to achieve that goal.
The proposed trade arrangement aligns with broader plans for Ukraine’s reconstruction after the war. The recovery blueprint—often described as a “Prosperity Package”—envisions mobilizing hundreds of billions of dollars for rebuilding with the support of international partners.
The initiative focuses on restoring critical infrastructure, rebuilding the energy sector and housing stock, reviving industry, and modernizing the economy. Long-term priorities include structural reforms, security guarantees, and deeper integration with the European Union.
Earlier, a Ukrainian delegation was traveling to the United States for talks on security guarantees and a post-war recovery package, and President Volodymyr Zelenskyy said he hopes the documents could be signed on the sidelines of the World Economic Forum in Davos.
Ukrainian officials have said the country will need $800 billion for post-war reconstruction. Zelenskyy also cautioned against pressure tactics in diplomacy, saying, “Ultimatums are not, in my view, a workable model for democratic relations between countries.”
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