Petteri Orpo considers a trade war possible – “A very exceptional situation”, he commented to Yle

Prime minister Petteri Orpo (kok) considers US President Donald Trump’s new tariff threat to be completely exceptional.

“I think this is a very exceptional and really special situation, that such language as Trump uses is used within the alliance. This is another example of the fact that Trump is very unpredictable. We need to negotiate among the allies, not pressure or threaten,” he commented during Radio Suomen’s Prime Minister’s interview session on Sunday.

The President of the United States announced on Saturday that at the beginning of February, he will impose ten percent import duties on Finland, Denmark and six other countries that support Denmark in the Greenland issue and participate in military exercises in Greenland. At the same time, he threatened that the tariffs will rise to 25 percent at the beginning of June if the United States has not taken over Greenland.

Orpo emphasizes that Europe has the tools to respond to the United States. However, he hopes that the situation could be resolved without drastic measures. However, the Prime Minister considers a trade war possible.

“Europe has tools. I really wouldn’t like to see that, but we have to prepare for different situations and make it absolutely clear that we don’t accept this. If this matter can’t be handled and put in order, the risk of a trade war is obvious,” he says.

Orpo said that he found out about Trump’s threat on a ski run when he looked at his phone and there were “countless” messages.

“When I understood what had happened, I immediately understood how serious the situation was. This is a serious place. Last night at half past eleven I had another conversation [Tanskan pääministerin] Mette Frederiksenin with.”

“Europe is ready to do a lot”

Orpo emphasizes that Donald Trump can be influenced. He reminds that during the past year it has been seen many times how Trump comes to the table with strong demands and rhetoric, which starts the negotiation process, which has resulted in better results from the European perspective.

“Trump is looking for negotiation leverage with his statements. The dialogue connection between Denmark and the United States is now essential,” the Prime Minister believes.

He hopes that the EU would discuss the matter at an extraordinary summit of heads of state, i.e. the European Council, as soon as possible. According to Orpo, a strong joint European response is needed from the summit.

“A clear message that regional issues are a matter for Denmark and Greenland, and regional issues are not handled this way. Europe is ready to do a lot because there is a lot of interest in the Arctic environment and its security. If this goes that far, we are ready for trade policy actions.”

The prime minister admits that Trump’s tariff threat is a very difficult issue within NATO. However, he believes that NATO is so important to the United States that it is being held on to.

“You can’t be lulled into this, however,” says Orpo.

According to him, at the NATO summer meeting, we should be able to agree together on actions to decide on strengthening the security of the Arctic region.

Orpo emphasizes that the United States can still be trusted and that the United States is an important partner for Finland.

“President Trump is not the same as the United States,” he stated.

More adaptation is needed

He warns that Trump will not help Finland’s economic growth. Uncertainty affects consumers. Orpo still assures that the foundation of the economy is in order. However, according to the prime minister, further adjustment is coming.

“The government will continue to take actions that I think are right. The government is not going to sit on its hands.”

Orpo says that the work will be “infinitely difficult”. However, he excludes tax increases from the options.

“The realism is that the cuts will be emphasized. It is a very big question where the money will be taken from, for example for defense spending.”

Finland will officially enter the EU’s deficit procedure on Tuesday at the Ecofin meeting of finance ministers.

“We are doing what this EU procedure requires. The information at the moment is that it would not bring many additional demands, because the Commission has been satisfied with the actions that the government is taking,” commented Orpo.