Exports to the US Are Becoming More Expensive: How Can Businesses Avoid Losses?

Last week, the United States announced that it would impose a 20% tariff on all imports from the European Union (EU). This is not just another piece of trade “noise”, but a clear signal that the global economy is changing and geopolitical tensions are increasingly becoming part of everyday business.

This is also a serious warning for Lithuanian businesses. The US has long been one of Lithuania’s most important export markets. In 2024 alone, exports of Lithuanian-origin goods to the US amounted to €1.6 billion, making it Lithuania’s fifth-largest export market.

The introduction of tariffs will have a significant impact not only on direct exporters. Indirect supply chains, particularly in the industrial and manufacturing sectors, will feel the effects immediately. Higher tariffs will undoubtedly reduce profitability and force many companies to review their strategies. This is not just an issue for large corporations—smaller businesses will also need to carefully reassess their export markets and risk management strategies, as well as rethink their positioning.

In this context, sitting back and hoping that everything will resolve itself is like waiting at a railway station for a train that left long ago. Businesses must respond not to what has already happened, but to what is unfolding now.

So, what steps can businesses take today to remain competitive?

Although European countries and the US have long been Lithuania’s main export destinations, the current situation calls for a broader view of potential markets. Europe remains a significant market, yet it accounts for less than 10% of the world’s population. Despite its strong purchasing power, focusing too narrowly on this region may become risky in the long term. Businesses should therefore actively explore opportunities in rapidly growing regions such as Southeast Asia, India, the Middle East, and Africa. As these economies expand, they are opening up new opportunities for exporters.

However, if a company primarily operates in its domestic market, expanding into other European countries alone can significantly diversify its risks.

Geopolitical conflicts create widespread instability, from disrupted supply chains and cancelled orders to business partners going bankrupt. In such uncertain conditions, protecting business transactions is essential. One of the most effective tools is trade credit insurance. In Lithuania, it can cover up to 90% of unpaid receivables and costs up to 0.5% of the insured amount. It is a small investment in business continuity that pays off when it is needed most.

The market itself is already signalling what will shape our lives in the coming decades. European countries’ growing preparedness for a potential military confrontation with Russia means not only a greater need for security, but also rising demand for a wide range of products and services—from construction and technological solutions to textiles and logistics. Almost every industry can find a niche within the defence sector’s supply chain. The sooner Lithuanian businesses begin exploring this field, the stronger their future prospects will be.

The business landscape is changing, but every disruption creates new opportunities. Those who can respond quickly, adapt, and proactively manage risk can not only survive a crisis but emerge stronger from it. The key is to explore new markets with confidence, manage risk wisely, and adapt to change at the right time.

15min.lt