New Tariffs, Old Problems
The United States is planning to introduce widespread tariffs on imported goods, which could have direct consequences for Finland’s economy. The US is one of Finland’s biggest trade partners, and restrictions on imports could hit exports, investment, and overall economic growth.
How Would This Affect Finland?
- Weaker Exports – A 10% tariff on Finnish goods would make them more expensive for US buyers, reducing demand.
- Investment Delays – Increased uncertainty in global trade tends to make companies hesitant to invest, which could slow Finland’s economic growth.
- Ripple Effects from Europe – If Germany and other European economies face trade issues with the US, Finland could suffer indirectly since many of its exports rely on supply chains that pass through these countries.
How Bad Could It Get?
- If tariffs are imposed, Finland’s GDP growth could slow by 0.5 percentage points in 2025, according to the Bank of Finland.
- Export growth could drop by 1.3 percentage points, and private investments could decline as companies hold back spending.
- Job growth could take a hit, with unemployment likely to rise.
The Bigger Picture
Finland has benefited from free trade, and these new restrictions could disrupt supply chains, making it harder for companies to compete internationally. While the direct impact of US tariffs may be small, the uncertainty they create is a bigger issue—businesses don’t like unpredictability, and many may look for safer markets to invest in.
What’s Next?
With no clear details yet on how these policies will be implemented, the only certainty is uncertainty. If tariffs take effect, Finland will need to adapt—whether by finding new export markets or shifting production strategies.
For now, businesses and policymakers are watching closely, hoping that global trade tensions don’t spiral into a full-scale economic slowdown.