After just three days in office, Prime Minister Avdullah Hoti said his country had acted in accordance with demands from the United States and the European Union.
With 82 votes against it in 120-seat parliament PM Albin Kurti's cabinet did not survive the motion, initiated by coalition partner Democratic League of Kosovo, less than two months since it came to power.
US envoy to Kosovo and Serbia Richard Grenell says Kosovo's plan to partially lift a tariff on Serbian imports is unacceptable and "must be completely dropped."
The predicted victory, with 98 percent of votes counted, opens the possibility for fundamental changes in Kosovo, which is suffering politically and economically, but there are bureaucratic challenges to overcome.
The victory of the two opposition parties was a heavy rebuke to parties led by former guerrillas who battled Serbia in the 1990s, paving the way for Kosovo's independence.
Subscribe to our Youtube channel for all latest in-depth, on the ground reporting from around the world.
Copyright © 2020 TRT World.