Latvia might be reserved if EU decides on retaliatory tariffs on US timber and services - PM

RIGA - Latvia might take a reserved approach if the European Union (EU) considers imposing tariffs on US timber and services as a retaliatory measure in the "tariff wars" started by the United States, because this affects the Latvian economy, Latvian Prime Minister Evika Silina (New Unity) said in an interview on TV3 channel Wednesday.

The prime minister said that Latvia can be affected not only by the US' decisions on new tariffs, but also the EU's potential retaliatory measures, so when deciding together on this policy, the Latvian government will think whether rapid responses are necessary, because it is important to assess how the retaliatory steps would affect Latvia's own economy.

We can take steps in response, but the question is in which sectors, Silina argued and explained that if the EU decides to impose retaliatory tariffs on the automotive and metals sectors, which would not have a significant impact on the Latvian economy, Latvia could "take quite a bold stand" in the vote, while on timber and services Latvia's position would be much more reserved, as Latvia does not want these sectors to be caught up in the "tariff wars".

New, higher import tariffs for around 60 US trading partners, including a 20 percent tariff on imports from the EU, come into force on Wednesday. China faces a 104 percent tariff.

This is yet another step in US President Donald Trump's belligerent trade policy, which has raised fears that the world economy could be heading into recession.

It has already been reported that on April 5, the US imposed a 10 percent baseline tariff on imports from almost all foreign countries.

The EU has promised to retaliate, although also expressing a readiness to negotiate with the US. Many countries around the world have announced countermeasures.