Trump’s duties also discipline Finland, but the biggest sufferer is the American consumer

US president Donald Trump Additional duties prescribed for products exported by Canada, Mexico, EU and China in the United States quakes in the market and make the lives of Finnish companies make it difficult. Trump said on Monday that he would postpone the duties planned for Mexico for a month.

But how should the effects of duties on households in different countries be assessed?

Firstly It is good to remember that the countries that are subject to customs will not pay the customs themselves, but they will eventually be paid by consumers of export products, ie consumers.

However, Trump, the Customs, may be hoped for export companies to reduce the price of their products in order to maintain their competitiveness.

However, this need, for example, is weakened by the fact that the US dollar has recently been strengthened in relation to the euro.

The US dollar has been strengthened in relation to the euro from October by ten percent. Strengthening began already when Trump’s choice as president began to look more confident.

For example, when the dollar is strengthened in relation to the euro, for example, ten percent, it makes the product made in the Euro countries so much more competitive in relation to its US currency.

In this way, the new 10 % customs duties will probably lose their power due to the strengthening of Trump’s EU countries in the near future.

Finnish Bank estimates In December, the public import duties planned by the US administration for all goods trade would make Finnish goods export and weaken the competitiveness of Finnish companies in the US market in relation to companies operating in the United States.

In recent years, the United States has become one of Finland’s most important trading partners in both freight and service trade.

According to the Bank of Finland, increased uncertainty and EU trade policy retaliations can indirectly weaken the economic growth of Finland and the rest of the euro area than the import duties set by the United States themselves.

Almost two -thirds of all exports of Finland are directed to Europe, and export to the euro area alone covers more than one third of the value of Finnish exports.

Of the countries outside Europe, the most important export market in Finland is the United States, with over 13 % of all exports.

Different Exports of countries and commercial areas are used as a percentage of exports. However, it is also essential to look at how much of the export of the United States constitutes the country’s national product.

In China, for example, the relationship between exports to GDP (GDP) was still more than ten percent in 2005, but today only about 3 %.

In other words, US exports are no longer of paramount importance to China, even though 2023 worth of $ 400 billion was exported to the United States.

China After the weekend, after Trump, he announced that 10 % of the additional supplements would take retaliation.

It also estimates that additional dedicents have no effect on China’s growth forecast for 2025.

“It is true that the importance of the United States to China has decreased,” Nordea’s main economist Wind says.

In the background is China’s attempt to press its addiction to other countries to a minimum. It is reflected in the raw materials as well as on the component side, Koivu says.

However, Koivu believes that the low commercial figures in China do not tell the whole truth.

Chinese goods have been increasingly sold to the United States through Vietnam, India and even Mexico.

“Let’s put on a stamp or stage of production that can be avoided by duties,” Koivu explains the practices.

Chinese companies have determined their production, for example, in Vietnam, for example, in Vietnam, Koivu recalls.

Birch He says that there has been quite a lot of interesting research in the United States about who was last paid for by customs increases when Trump raised duties during his first presidential term.

“After all, that burden has gone to the US, wholesale or consumers. Of course, it is product -specific, but most remained in the US account. That’s why American economists say that these barriers to trade will not benefit the United States. ”

According to birch, the long -term effects of customs duties should be considered on a horizon for more than ten years.

However, in the shorter term, it seems that duties on components and raw materials reduce production and the number of employees in the United States, he says.