US tariffs to pose challenges to some Lithuanian businesses, but no need to panic - PM

VILNIUS - The United States' planned tariffs on imports from the European Union will pose challenges for some Lithuanian businesses that export to America, but the situation should not be dramatized, Prime Minister Gintautas Paluckas said on Thursday.

"Today, I wouldn't advise anyone to dramatize (the situation) or start panicking," Paluckas told the Ziniu Radijas radio station.

"We really need to carefully assess the situation, the potential consequences, and then talk about measures, but our businesses are flexible, competitive, and it's not only the price that determines whether a Lithuanian company or its products and services are chosen," he added.

The prime minister was commenting on Donald Trump's announcement on Wednesday that the US would impose 25 percent tariffs on goods imported from the EU.

The US president did not specify which goods would be affected.

Lithuania exports over 1.5 billion euros' worth of goods and services to the US annually.

Paluckas noted that the Lithuanian furniture industry, which traditionally competes in the US market not only on quality but also on price, might face more challenges than others in finding alternative markets.

Meanwhile, high-value-added goods or services typically enter the US market not only because of price, he said.

The prime minister emphasized that it is still unclear which goods will be subject to the tariffs.

"As is often the case now, something is said, and we have to fill in (with content)," he said.

Paluckas said he had discussed the situation with European Commission President Ursula von der Leyen during her visit to Vilnius a few weeks ago.

"The European Commission has prepared a certain response that might soften the US position on imposing really high tariffs on Europe or at least reduce the scale or duration of these additional tariffs," he said.