Import tariffs and trade policy uncertainty will dampen economic growth : alternative scenario

Abstract

The incoming administration in the United States is planning widespread tariffs on imported goods. Such tariffs would hamper Finland’s goods exports, as the United States is an important trading partner for Finland. However, the impact of the import tariffs themselves would remain limited. Finland’s external demand could be weakened more broadly by a general increase in trade policy uncertainty and by an expansion of barriers to international trade. This would reduce exports and corporate investment and would markedly hinder growth in Finland’s economy.