SY’s Pentikäinen: Trump’s tariffs could erode nascent Finnish economic growth

Mikael Pentikäinen, CEO of Suomen Yrittäjät, the Finnish SME association, says US President Donald Trump’s announcement of steep hikes to tariffs is extremely regrettable.

“This is a dark day for the global economy. Nobody benefits from a trade war, least of all a small export-dependent country like Finland. Trade wars are toxic for us,” Pentikäinen says.

“Tariffs raise prices and make the flow of goods more difficult. Trump’s trade war will also be quickly felt by American consumers when prices rise and inflation accelerates,” Pentikäinen says.

Pentikäinen says that with time, tariffs can help force companies to move their manufacturing to the United States, but that it will take time.

“Every company also knows that Trump’s term will end eventually, and that this expensive trade war could become history. That’s why the threshold for building factories in the US for Trump’s sake is high. Companies also see that Trump is a walking trade and foreign-policy risk, a man whose policies are a flimsy basis for investment.

“This new trade war, which the EU will also have to respond to, could erode Finland’s nascent growth entirely. Unfortunately, the trade war will hit Finnish companies and business owners hard,” Pentikäinen says.

“Naturally, a negotiated settlement to the trade war should be sought. However, that does not look likely, as Trump is trying to move manufacturing to the US and fund tax cuts with tariffs. Trump is a tariff man, as he’s said.”

Pentikäinen says that Finnish businesses should move their sights from the US elsewhere.

“This is unfortunate, because the US would be a huge and dynamic market. However, at least in the next few years, it’s a highly unpredictable environment. That risk must be recognized,” Pentikäinen says.

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