Lithuanian companies experience pressure to engage in trade with China due to the ongoing US tariff conflict
In the midst of escalating trade tensions between the US and China, Chinese companies are offering increased trade cooperation to Lithuanian businesses, a shift that could potentially lead to lower prices or greater availability for European markets.
According to Vidmantas Janulevicius, head of the Lithuanian Confederation of Industrialists, Chinese companies have been actively seeking cooperation in Lithuania, a change that Kestutis Cernieckas, a member of the Vilnius Chamber of Commerce, confirms. Cernieckas reports receiving about 20 new offers a day to work with Chinese companies.
This shift in trade patterns comes after the US imposed heavy import duties on China, with a 10-percent baseline tariff on all countries except China, and an overall tariff level of 145 percent on China's imports, as reported by Delfi.lt. The tariff pause announced by US President Donald Trump does not affect these tariffs, but it does not apply to imports from the EU either.
The US tariffs have led to a significant decrease in US imports from China, causing Chinese exporters to seek new markets. The euro area, which includes Lithuania, is estimated to see an increase in imports from China of 7-10% in 2026 due to this redirection.
While the exact pricing impact on European countries like Lithuania is not yet clear, with increased competition and supply options due to redirected Chinese exports, it is reasonable to infer downward pressure on prices or improved terms for European importers.
It is important to note that Lithuania's imports from China amount to around 2 billion euros compared to almost 700 billion euros for the EU as a whole. This makes Lithuania a relatively small player in the Chinese market.
The tariff pause by Trump, a temporary measure lasting 90 days, was also reported by Delfi.lt. During this period, China's production capacity remains the same, and they are looking for new places to sell, including Europe.
Chinese trade cooperation within regions such as Southeast Asia has also grown via agreements like RCEP, aimed at lowering trade barriers and making exports more cost-effective. Such international cooperation efforts may contribute to China’s diversified export markets, including Europe.
In summary, the US import duties on China have indirectly caused China to offer more trade cooperation and increase exports to Europe, including Lithuania, which could translate into lower prices or improved availability for European markets. This development is a significant shift in the global trade landscape and one that Lithuanian businesses are actively engaging with.
Given the US import duties on China leading to a redirected flow of Chinese exports to Europe, it's plausible for Lithuanian businesses to engage in finance-oriented negotiations with Chinese companies, aiming to secure favorable business terms. As more Chinese businesses seek cooperation in Lithuania, the resulting competition could potentially bring lower costs or better financing conditions for European importers.
