Those steel and aluminum tariffs, which President Donald Trump ordered recently are going to hit hard the EU's common market. Finnish experts, however, see no direct disaster for Finland but some side effects can be devastating.
Chief economist Penna Urrila in Finnish business community EK says that the situation must be considered as serious.
- The direct consequences are not so drastic, as our steel exports represent just over two percent of total exports to the United States. But if we look at all possible reactions and countermeasures from the EU, China and the rest of Asia, we are approaching something like a commercial warfare, which is regrettable.
The steel Finland exports to the United States is not even a significant proportion of the country's entire steel port, but the effects may potentially counter the industry's growth.
- Although there are low numbers, the companies exporting to the United States will be affected, said Urrila.
Urrila believes that the nightmare scenario is now a collapsed world trade and full-scale trade war. He still believes that the risk is still so high, but it can not be ruled out.
- For two hundred years we have had an open world trade, which means that all parties involved were getting better, it's old economic wisdom.
- So now that you start to go wrong is probably quite serious, even though the first steps can be seen as small.
Many EU countermeasures loaded
Foreign Minister and Development Minister Anne Virolainen believe that the EU is already prepared for action if needed.
Penna Urrila supports Finland for its decision to take part in possible countermeasures as part of the European market.
- A small country like Finland maximizes its influence by joining the common market. There is no room for national games.
- We just have to make sure our interests are not hurt. For Finland it is crucial that the world market is kept open, says Urrila.
Source: Svenska Yle
