With what Industry Minister Cecilie Myrseth (Ap) calls a “power gathering”, Norway steels itself for difficult times when the newly elected US President Donald Trump seizes power in the world’s largest economy on 20 January.
Parts of Norwegian business, both among owners and employees, have a lot to fear if Trump does as promised during the election campaign and introduces high tariffs on imported goods. Trump sees tariffs as an important tool to strengthen the US economy and has announced a global tariff of between 10 and 20 percent. Chinese products could face a 60 percent tariff
– There have been clear signals about increased customs barriers from the American administration. There is reason to believe that it will be answered, whether this is from China or from the EU. We are very keen not to get into a tussle between these large economic blocs, says director Idar Kreutzer for international relations in NHO to NTB.
First meeting
Industry Minister Myrseth gathered several players in Norwegian business on Thursday for what she called “a first meeting” to discuss the challenges that may come.
The government is keen to follow developments closely in the coming weeks and months. When the sale of oil and gas is not taken into account, Norway has a significant deficit in the trade balance with other countries. Not least, much of the mainland industry is dependent on exports to Europe, which in turn sells its goods on to the USA.
Norway is not part of the EU’s customs union and can thus also be affected as a third country if the EU sets up barriers to its own imports in response to American measures.
Therefore, the dialogue with the EU will also be stepped up significantly in the coming weeks, warns the minister.
EEA extremely important
– We have the EEA agreement, which is extremely important. We have to also follow up the cooperation with European countries bilaterally in addition to the EU, says Myrseth to NTB.
– We have important industrial partnerships with Germany, we have that with France, we are strengthening our cooperation with the UK. We must follow that up with content and concrete action. We will also do that in the future, she continues.
LO is also concerned about the prospects that the change of president brings with it. In solidarity with American trade unions who may face a tough time with the new administration, but in particular the uncertainty linked to Norwegian businesses is greatest.
– Norway is a small open economy. We are completely dependent on trade. And we know that we depend on importing a lot of goods. Our exports finance our imports. Now we see uncertainty in what is happening. We supply a lot of specialized products that are part of European industry, says Kenneth Sandbu, head of the Business Policy Department at LO.
– Must work with Europe
Confederation leader Frode Alfheim of the trade union Styrke is even clearer in what he believes the government must do to prevent the Norwegian process industry from collapsing when Trump takes office.
– We must be even more heavily on the European track and work with Europe, so that we do not forget each other in how to meet possible new trade obstacles to the USA, says Alfheim to NTB.
– We make a living by supplying German industry, and if German industry finds it more difficult to deliver to the USA, then it is bad news for the members of our process industry in Norway, he says further.
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