Is Lithuanian agriculture ready for US tariffs?
The Muit War that has broken out in the global economy calls for attention to be paid to the Lithuanian situation. Are many agricultural and food products exported to the US? Will the European Union be affected by increased tariffs? And most importantly – is the Ministry of Agriculture ready?
Exports to the USA
Last year, according to statistics from the Ministry of Agriculture (MAA), exports of agricultural and food products to the USA accounted for only 1.1% of Lithuania's total agricultural and food exports. In 2023, the same will be true. In terms of Lithuania's total exports to the US, agri-food products account for 4.3%.
The ministry's press service also provided the exact groups of exported products, which it claims have remained unchanged for five years, as follows:
• milling products; malt; starch; inulin; wheat gluten (accounting for 30.7 per cent of the value structure of agri-food exports in 2024);
• milk and milk products; poultry eggs; natural honey; food of animal origin (18.4% of the export value structure in 2024);
• oilseeds and oleaginous fruits; miscellaneous cereals, seeds and fruits; industrial and medicinal plants; straw and fodder (12.6% of the value structure of exports in 2024)
• products made from cereals, flour, starch or milk; flour confectionery (8.6% of the export value structure in 2024);
• miscellaneous food products (8.1% of the export value structure in 2024)
(Im)potential losses
Egg producers are rapidly expanding their sales network in the US. However, even increased tariffs should not prevent the development of export opportunities in the US, according to the MAF.
The Ministry pointed out that Lithuania's agricultural and food exports are highly diversified. Therefore, production can be redirected to other markets if necessary. Currently, our country exports agricultural and food products to more than 156 countries worldwide.
„Market trends and the impact of customs duties on Lithuanian agri-food exports will undoubtedly continue to be monitored. It is important to consolidate efforts at the EU level to ensure that any potential response to the impact is effective and that possible EU market protection measures meet the needs of our producers," the MAFF noted on preparing for (possible) losses due to US duties on Lithuanian products.
Government competence
„The Ministry of Agriculture is making continuous and targeted efforts to diversify export markets for agricultural and food products and to consolidate Lithuania's position in existing export markets. In response to the demand from exporting companies, we will continue to work consistently, with the support of the Ministry of Foreign Affairs and the MoFA, to expand export markets and enhance the competitiveness of our industry," the Ministry of Agriculture firmly promised.
In view of the ongoing US-EU customs battle, the Ministry assured that it is monitoring the situation.
The MoFA expressed the hope that tariff increases are a short-term trade policy measure. However, it also confirmed that the ministry is ready to look for EU-level business support solutions if needed. These could be reinforced by measures at national level.
„However, this is a matter for the Government of the Republic of Lithuania“, – stated the MAF.
