Donald Trump’s economic policies could trigger a trade war and affect Norway, believes economics editor Ola Storeng.
Commenting on Trump’s speech on the US economy, the Aftenposten economics editor writes that the Republicans’ opposition to free trade may be as important for other countries.
Storeng points out that Trump has called the World Trade Organization (WTO) a disaster.
“For small countries like Norway, the enforcement of the WTO rules is perhaps the foremost guarantee against arbitrary trade measures implemented by major countries,” he writes.
If Trump increase tariffs on goods from China and other countries, these countries will likely increase tariffs on American goods. It appears that Trump is willing to risk a trade war, according to Storeng.
He is also worried about what will happen to the US budget deficit if Trump cuts taxes without cutting into large public expenditure. The concern is shared by analyst Johnny Bo Jakobsen at Nordea in Denmark.
– Donald Trump continues to recommend very large tax cuts. Meanwhile, he rejects to reduce costs, so overall it will cause an explosion in public debt, says Jakobsen to news agency Ritzau.
– In light of this, one must call Trump’s plan dangerous and bordering on the totally irresponsible, he adds.
Source: NTB scanpix / Norway Today