EU preparing retaliation against US tariffs

Photo: Kęstutis Budrys, urm.lt

The European Union is preparing retaliatory measures after US President Donald Trump announced on Wednesday that the US would slap 25% tariffs on imports from the bloc, Lithuanian Foreign Minister Kestutis Budrys declared on Tuesday.

“Tariffs harm international trade,” the minister explains. “They have consequences for both parties. Certain scenarios suggest that effects for the United States and its economy will be even greater. The European Commission is using these arguments and telling decision-makers in Washington that they should not do this, because it will cause immediate pain and will inevitably lead to retaliatory EU tariffs.”

Budrys adds that the US has not yet decided on the tariffs, and so the intervening period of time should be “used meaningfully” to convince Washington of the potential consequences.

“We already saw regrettable experiences when tariffs were imposed on the United States’ neighbours, even if those decision were later reviewed,” the minister says. “Let’s hope that we can reach common ground. As I said already, the decision has not yet been made.”

Budrys went on to say that US tariffs un EU imports could have direct and indirect effects on Lithuania in terms of supply chains or other European countries. He added that he is discussing this issue with the European Commission and his counterparts in EU member states.

The foreign minister described tariffs as “a thing of the past” which should not be applied in Transatlantic relations.

Lithuanian Prime Minister Gintautas Paluckas said earlier on Thursday that US tariffs on EU goods would pose challenges for Lithuanian businesses which export to that country, but there is no reason at this time to “dramatize” the situation.

Economics and Innovation Minister Lukas Savickas, for his part, says that the planned US tariffs would indeed have a direct impact on the Lithuanian economy, noting that industry and higher value-added products would probably suffer the worst effects.

Trump said on Wednesday that he is planning to impose 25% tariffs on the EU, though the president did not name specific goods. Instead he declared that the tariffs would apply to a broad range of imports from the EU, including motor vehicles.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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