Lithuanian companies face increasing pressure to trade with China due to the ongoing US tariff conflict
In recent times, Lithuanian businesses have noticed an uptick in daily offers for collaboration from Chinese companies, a trend that has been observed by Vidmantas Janulevicius, head of the Lithuanian Confederation of Industrialists, as well. This surge in interest comes as Chinese companies seek new markets for their production capacity, following the closure of the US market due to heavy import duties.
The US, under the administration of President Donald Trump, imposed tariffs on Chinese goods, reaching peaks of over 100% in early 2025 before some reductions to around 30-50% effective rates. These tariffs aimed to reduce imports from China into the US by making Chinese goods more expensive domestically.
However, it is essential to note that there is no clear evidence to suggest that China has increased trade cooperation with European countries or lower prices in those markets as a direct response to US tariffs. While it is logically possible that Chinese companies might try to divert exports to other markets like Europe to compensate for US market losses, this specific effect—improved trade cooperation or price reductions targeting Lithuania or Europe—is not confirmed or documented in the current sources.
Lithuania, being a small player in the Chinese market, imports around 2 billion euros worth of goods from China, compared to almost 700 billion euros for the EU as a whole. The overall tariff level imposed by Trump on China is currently 145 percent.
On April 9, President Trump declared a 90-day pause on his sweeping tariffs, and a 10-percent baseline tariff was imposed on all countries except China. Despite this pause, the changes in price offers from Chinese companies are visible in the Lithuanian market, with Chinese companies more actively offering trade cooperation to Lithuanian businesses.
Prior to the US import duties, Kestutis Cerneckas, a member of the Vilnius Chamber of Commerce, did not receive many offers for collaboration from Chinese companies. Now, these offers are a daily occurrence, indicating a shift in Chinese trade strategies.
In summary, while the heavy US import duties on China have raised costs for Chinese exports to the US, there is insufficient information to conclude that this has led to stronger trade ties or price drops by Chinese firms toward Lithuania or European countries. However, the increased interest from Chinese companies in collaborating with Lithuanian businesses is a significant development that warrants further investigation and analysis.
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- The surge in interest from Chinese companies in collaborating with Lithuanian businesses might be a response to the increased costs of exporting to the US due to heavy import duties imposed by President Trump.
- Given the uptick in offers for collaboration from Chinese companies, it seems that Lithuanian businesses could potentially benefit from this trend, especially since Chinese firms are seeking new markets due to the closure of the US market.
