It is too early to talk about the possible impact of US tariffs on Latvia’s economy / day

Aseraden pointed out that the US announcement on the introduction of a comprehensive customs tariffs on April 2 this year creates significant economic uncertainty and would adversely affect the trading environment and economy of the European Union (EU) countries.

At the same time, the Minister of Finance pointed out that high uncertainty in US politics could strengthen the EU’s benefits of secure jurisdiction and strengthen the international role of the euro.

The Minister informed that the direct balance of trade in Latvia and the United States was not high – in 2024 Latvian exports of goods to the US accounted for 2.8% of the total export of goods. However, Latvia, as a small, open economy, will be influenced by the economy in the most important foreign trade partner countries, thus reducing demand after Latvia’s exports.

The Minister of Finance said it was too early to talk about the possible amount of influence – experts from the Ministry of Finance assess the content, its eligibility and potential impact on specific sectors. It is also expected that the European Commission will soon be evaluated and the EU’s response steps will be launched.

It has already been reported that US President Donald Trump announced the settlement of new customs tariffs for imports of goods in early April, including a 20% tariff. In addition, Trump previously set tariffs for steel and aluminum imports, as well as cars and car parts.

Among them, the 10% customs tariff came into effect on Saturday, April 5, while the highest tariffs will come into effect on Wednesday, April 9.

At the same time, the EU announced on March 20 this year that the introduction of customs tariffs for US goods, which was intended to respond to Washington’s tariffs for steel and aluminum imports, was postponed to give more time to dialogue.

The US 25% tariff for steel and aluminum imports from around the world came into force on March 12, and the EU planned to respond with two rounds of tariffs, which had to come into force on April 1 and mid -April.

It was expected that tariffs from US imported goods worth four billion euros, including steel and aluminum, whiskey, motorcycles, jeans and orange juice, would come into force on April 1. In mid -April, the second round of EU customs tariffs was planned, which would be much wider and will apply including cosmetics, clothing, wood, soybeans and other agricultural goods.

In 2024, EU exports to the United States reached EUR 531.6 billion, of which the goods amounted to EUR 333.4 billion. At the same time, there is a deficit in the service sector trade in the US.