RIGA, April 9 (Xinhua) -- Latvia is likely to suffer a double blow amid the ongoing trade tariff disputes initiated by the United States (U.S.), Bank of Latvia economist Uldis Rutkaste warned during a meeting with lawmakers on Wednesday.

Speaking to the economic, agricultural, environmental, and regional policy committee of the Latvian parliament, Rutkaste explained that the first impact will come directly from the United States, affecting sectors operating within U.S. markets. The second will come indirectly through the European Union (EU), Latvia's main trading partner, which maintains substantial trade relations with the U.S.

Rutkaste emphasized the importance of assessing how the U.S. sweeping trade tariffs will influence the European economy as a whole.

According to current estimates by the Bank of Latvia, a 25 percent import tariff could lead to a 0.5 to 1 percent reduction in Latvia's gross domestic product (GDP).

"Although exports to the U.S. account for only 4 percent of Latvia's total exports, the country's indirect exposure is quite significant," Rutkaste noted, pointing out that Latvia supplies various materials to manufacturers in other EU countries whose products are exported to the U.S. Enditem

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