Synopsis
Lithuanian President Gitanas Nauseda asserted that trade wars lack winners while the US contemplates imposing tariffs on the European Union. He emphasized the significance of economic ties between the EU and the US and warned of potential repercussions from such tariffs, suggesting constructive dialogue instead.Key Takeaways
- Trade wars generally result in losses for both sides.
- EU-US economic ties are crucial for trade and investment.
- Tariffs could lead to serious repercussions.
- Constructive dialogue is essential to resolving disputes.
- Open markets are vital for sustainable economic growth.
Vilnius, February 4 (NationPress) Lithuanian President Gitanas Nauseda stated that trade wars seldom yield winners, as the United States considers the implementation of tariffs on the European Union (EU).
"I am not aware of any trade wars throughout history where one side emerges victorious while the other suffers losses -- typically, both parties encounter difficulties," Nauseda told Lithuanian broadcaster LRT during an informal meeting of EU leaders in Brussels, as reported by Xinhua news agency.
He emphasized the significance of EU-US economic relations, warning that the introduction of tariffs could lead to grave repercussions. "The EU-US partnership stands as one of the most substantial in trade and investment. Should tariffs be enacted, the EU would have to respond, resulting in losses for both sides," he explained. Nevertheless, he suggested that the conflict could still evolve into a constructive dialogue.
"If the competitiveness of the automotive sector is jeopardized, we ought to investigate sector-specific free trade agreements," Nauseda remarked. He also encouraged the EU to present proposals that US President Donald Trump might perceive as interesting, appealing, and worthy of consideration, instead of solely concentrating on defensive strategies.
On Saturday, Trump enacted an executive order that raised tariffs by 10 percent on Chinese imports and 25 percent on goods from Mexico and Canada, inciting widespread backlash and countermeasures. He also indicated that tariffs on the EU are a forthcoming certainty.
The EU condemned Trump’s decision on Sunday, cautioning that it would adversely affect all parties concerned, according to the Baltic News Service.
"The European Union (EU) expresses regret over the US's decision to impose tariffs on Canada, Mexico, and China," an EU spokesperson was quoted as saying by local media.
He underscored the necessity of open markets and adherence to international trade regulations, asserting that these elements are vital for robust and sustainable economic development. "Tariffs induce unnecessary economic turmoil and elevate inflation. They are detrimental to every party involved," he asserted.
In reference to potential US tariffs on EU goods, the spokesperson remarked, "The EU would react decisively against any trading partner that unfairly or arbitrarily levies tariffs on EU products."
