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The policy of isolation does not lead to anything good - says Siv Jensen, Norwegian Minister of Finance. In her opinion, everyone will lose from the changes in US trade policy introduced from June 1. However, Norway may feel these consequences twice as much, because in response to the US actions, the European Union also announced tightening regulations customs.
New tariffs for steel and aluminum
As announced by Donald Trump, new tariffs on steel and aluminum will apply from June 1 this year. Such information was provided by the White House in January. According to the announcements, the new rates will also cover, inter alia, solar panels (duty increase up to 30 percent), washing machines (20 percent, but when the number of imports exceeds 1,2 million - 50 percent), etc. According to experts, such actions bear the hallmarks of protectionism, which Donald Trump himself does not hide. In his opinion, the change in tariffs is intended to protect the American economy.
Other countries respond
These changes may initiate a new economic war on a global scale. In response to the new US customs policy, both China, South Korea and the European Union intend to introduce new rates on goods imported from the United States. Against the policy of the White House, among others, German Economy Minister Brigite Zypres. Sweden was also critical of these actions, and Norway has now joined this group.
Siv Jensen full of anxiety
As Siv Jensen emphasized, the Norwegian economy has always been based on foreign trade. Therefore, he is concerned that the situation will worsen, primarily due to the fact that Norway remains outside the EU customs union. Therefore, if the European Commission decides to tighten customs regulations, the trade balance will deteriorate Norway with countriesthat belong to the European community. And as Siv Jensen emphasizes, the Kingdom is completely dependent on access to foreign markets.
US actions are understandable
According to the Norwegian finance minister, Donald Trump's tightening of customs policy is understandable. They are due to the fact that there is a large income gap in American society. As she emphasized, Norway has a large income that is fairly distributed. However, other countries are not that effective in doing so. This creates a sense of injustice among the poorer sections of society, leading to protests. In this light, the actions of the US are understandable, but not wise.
Possible consequences
According to experts, protectionist policies in effect always lead to higher prices, inhibition of innovation and job cuts. Thus, the consequences of changes in US tariffs may not be as desired. It is not known how global markets will react to such moves. If the United States continues to pursue protectionist measures that isolate the country economically, a new trade war with China and South Korea could begin. Its effects will also be felt by the countries belonging to the European Union.
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