EU prepares retaliatory measures against US tariffs - Lithuanian FM

VILNIUS - The European Union is preparing retaliatory measures after President Donald Trump announced on Wednesday that the US would slap 25 percent tariffs on imports from the bloc, Lithuanian Foreign Minister Kestutis Budrys said on Thursday.

"Tariffs harm international trade. They don't come without consequences for both sides. In certain scenarios, the damage will even be greater for the United States, particularly for its economy," Budrys told reporters.

"These are the arguments the European Commission is using as it works with decision-makers in Washington, trying to convince them not to do this, because it will hurt immediately, and it will inevitably lead to retaliatory EU tariffs," he added.

Budrys stressed that the US decision on tariffs for EU imports had not yet been made, so this time should be "used meaningfully" to convince Washington of the consequences.

"We saw certain regrettable experiences when tariffs were imposed on the US' neighbors; those decisions were later reviewed. Let's hope that this time we can also reach a common understanding. Again, as I repeat, the decision hasn't been made yet," he said.

The minister said that US tariffs on EU imports could have both direct and indirect effects on Lithuania, for example through supply chains or other European countries. He added that he is also discussing this issue with the European Commission and his EU counterparts.

Budrys described tariffs as "a thing of the past" that should not be applied in transatlantic relations.

Prime Minister Gintautas Paluckas said earlier on Thursday that US tariffs on EU goods would pose challenges for some of Lithuania's businesses exporting to the US, but that there was no need to "dramatize" the situation.

Economy and Innovation Minister Lukas Savickas said that the planned US tariffs would have a direct impact on the Lithuanian economy. He noted that industry and higher value-added products would likely be most affected.

Trump said on Wednesday that he would impose 25 percent tariffs on the EU. He did not name specific goods but said the tariffs would affect a wide range of EU imports, including cars.