US tariffs could lead to 0.5% drop in Lithuanian GDP – industrialists’ leader

The United States’ 25% import tax on the European Union (EU) could lead to a 0.5 percentage-point drop in Lithuania’s gross domestic product (GDP), the head of the Lithuanian Confederation of Industrialists (LPK) warns.

"The LPK estimates that if the customs duties come into force at 25%, they will cost Lithuania at least 0.3 percentage points of GDP. But we think that the impact will be around 0.5 percentage points, and there could be a worse scenario. But that is the case if we enter a broad tariff war," Vidmantas Janulevičius, president of the LPK, told LRT Radio on Tuesday.

He noted that the US administration believes tariffs are necessary because of the large gap between US exports to the EU and imports from Europe. However, this gap is merely 3% when services are included, the LPK head said.