EU, not member states, should negotiate tariffs with US - Lithuanian economy minister

VILNIUS - Lithuanian Economy and Innovation Minister Lukas Savickas believes it is the European Union - not individual member states - that should negotiate with the United States over newly introduced tariffs.

"It's very important to maintain solidarity among EU member states and to negotiate as a single, significant and truly economically powerful bloc. That's basically what is being done," he told LRT Radio on Friday.

Savickas said the EU must send a clear message that it is ready to reach a deal and engage in talks with the US in search of trade balance.

"I'm definitely hearing, through both formal and informal channels, that the responsible European commissioners are ready to negotiate," the minister said.

"We hope the best-case scenario will still play out, but we're also preparing for the alternative, assessing what's needed to help our companies adapt to the changing situation," he added.

According to Savickas, the European Commission intends to respond proportionally to US decisions but continues to stress that it would be better to reach an agreement and find a compromise.

On Wednesday, US President Donald Trump announced a blanket 20 percent tariff on imports from the European Union. He did not specify which products would be subject to which specific rates.

The Economy and Innovation Ministry forecasts that the White House's aggressive trade policy could shrink Lithuania's economy by about 0.65 percentage points over three to four years.

Direct Lithuanian exports to the US totaled 1.6 billion euros last year, accounting for about 6.8 percent of total exports of Lithuanian-origin goods.

On Thursday, the Economy and Innovation Ministry unveiled its first aid package, worth 20 million euros, for businesses that may be affected by the tariffs.

The measures are designed to soften the blow of the US-initiated trade war and help diversify markets.

The Bank of Lithuania said earlier that a potential trade war between the US and the EU could shave 0.33 to 1.3 percentage points off Lithuania’s economic growth over a four-year period.