Tariffs and Threats: President Trump’s Trade Policy and Its Consequences to Finland

Abstract

This Brief analyzes president Trump’s trade policy and its implications for Finland. We focus on the import tariffs imposed by the Trump administration and the counter tariffs imposed by EU and China and evaluate their effects through international value-added chains on Finland.

The findings suggest that the overall impact of the new tariffs is small. The largest employment reductions in Finland are caused by the tariffs on EU exports to the US. Furthermore, we argue that the unpredictability of president Trump’s policies and the threat of a trade war has a significant effect on global market stability. The WTO has also been facing a crisis due to the actions of Trump’s administration. Our analysis emphasizes the importance of a stable and predictable trade system, which president Trump has been undermining.

Publication info

Series
ETLA Muistio - ETLA Brief 73
Date
28.11.2018
Keywords
Trade policy, Tariffs, Value-added chains, Employment
ISSN
2323-2463
JEL
F13
Pages
17
Language
Finnish