Trump’s duties would hit the Finnish chemical industry, the impact on exports hundreds of millions of euros

US presidential Donald Trump The planned 25 % import duties for the European Union would hit the second largest export industry in Finland. If implemented, Trump’s duties could cut more than EUR 300 million from the Finnish chemical industry to the United States annually, estimates the Association for the Finnish Association of Chemical Industries.

According to a recent membership survey of the organization, the fires would have a significant impact on chemistry companies. More than 80 % of the member companies who responded to the survey reported that customs would reduce exports to the United States. 42 % of companies said that exports to the United States would be significantly reduced.

The survey was answered by 79 CEOs of member companies of the Chemical Industries Association. The survey was conducted from 27 to 28th. February.

Trump Last Wednesday announced his intention to set 25 % customs duties on products imported from the EU to the United States. So far, it is not known when the duties should come into force. It is also unclear whether the duties would apply to all goods imported from the EU or only certain products or sectors.

Trump’s comments have increased concerns about the trade war between the United States and the EU. The EU has said it will take retaliation if the customs threatened by Trump are realized.

Finnish For the chemical industry, the high customs of the United States would be a tough knock. The export of the chemical industry to the United States has grown clearly in the 2020s and the United States is the most important single export country in the industry. Last year, exports of the chemical industry to the United States were EUR 2.7 billion and 18 % of the industry exports to the United States.

For medicines, the US accounted for as much as 40 % of exports. Last year, medicines were taken to the United States of more than EUR 1.5 billion in the United States. The second most important product group in the chemistry industry was oil products, which were taken to the United States worth over EUR 700 million.

The Chemical Industry Association reports that the pharmaceutical industry is dependent on worldwide integrated supply chains in the acquisition of raw materials, active drugs and ready-made medicines. Disorders in this network could have significant consequences for the availability, price, and research and development investments of medicines.

“It is critical that trade policy in Finland and EU Nor EU ensures the continuous availability of essential medicines and prevents potential customs on health care systems and patient health,” says the CEO of the Pharmaceutical Company Orion and Chairman of the Board of the Chemical Industry Association Liisa Hurme in the bulletin.

Chemical industry 52 % of the companies that responded to the survey said they had to compromise on their margins if Trump’s duties were realized. Only a quarter of companies believed they could transfer customs to customs so that no need to reduce the margins.

The impact of customs duties would be particularly significant because exports to the United States could be poorly replaced. 42 % of member companies in the chemical industry said that no replacement markets were not known at all. In addition, 45 % of companies said that the replacement market is only known.

Indeed, the chemical industry has followed the early days of Trump’s presidential term.

“Exports and global trade are vital to the chemical industry, and Trump’s customs duties are badly angry. According to our recent membership survey, it is clear that the fires would have a clear negative impact on business in Finland, ”says CEO of the Chemical Industry Association Mika Aalto in the bulletin.

In the chemical industry survey, 33 % of companies predict that Trump’s duties would lead to a decrease in investment in Finland. In addition, 35 % of responding companies believe that duties would reduce employment in Finland. Approximately equal share, 37 %, estimates that production would decrease in Finland.

Chemical industry According to companies, the best way to respond to Trump’s customs would be to make some kind of contract to avoid duties. This is the opinion of 58 % of the respondents in the survey.

“The potential approach to the Customs threat seems to be to give a seeming victory to Trump. In this case, Trump can say in his home country that he has done a deal while deferring or failing to declare duties, ”Aalto says.

There is also support for the setting of newcomers in the United States. This option is supported by 28 % of companies.

To the chemical industry Possible consequences of the US coming to China are also concerns. In the survey, 70 % of companies expect China to increase cheap imports to Europe if the United States sets duties to China.

Already at the beginning of February, Trump would slide a new 10 % customs duty from China to the United States. Last week, Trump reported that he plans to put another 10 % additional duty on China’s imports, which would take effect on Tuesday this week.