One of the rare times I agree with a general consensus emanating from European governments and the media…
I know I’ll lose some people because of my position, but I warn you, it’s based upon solid economic principles and the historical record. Listen to Mark’s take on this, and then seriously ask yourself if tariffs are really that great of a means in generating economic activity. That said, Trump may very well be just highlighting the rest of the world’s high tariffs in place. No one is blameless here. The US has over 15 000 tariffs in place, the EU is chock full of them as well.
Trade war poison
Late last week, senior Finnish politicians cautioned that a US plan to impose tariffs on steel and aluminium could start a trade war and slow down global economic growth.
This morning, Turku’s main daily, Turun Sanomat, was among the papers that carried a syndicated Lännen Media report with more reaction to US President Trump’s tariffs.
Interviewed for the report, the director for industrial policy for the Technology Industries of Finland, Matti Mannonen, explained that Trump’s tariffs are likely to make US steel and aluminum more expense and drive prices down in Europe as producers seek alternative markets.
This will benefit European engineering industries and other sectors that use steel, making them more competitive than their American counterparts.
However, according to Mannonen a development like this would be short-lived as tariffs could soon be expanded to cover other goods. A trade war could lead to a situation that would, in Mannonen’s words “be poison” for export-dependent Finland.