The trade war between the United States and China affects entire world trade, and will also hit Norway think many experts.
“Norway will certainly be affected.The trick in practice does is to tear apart the international trade duties we have had through the World Trade Organization. This could have major consequences for a small and open economy like Norway,’’ said economist, Olav Chen,of Storebrand Asset Management to Aftenposten newspaper.
Last week, the US added a toll to Chinese goods to an annual value of 34 billion. They announced as late as Wednesday that the customs duties on Chinese goods are to be sharply stepped up in two months. China has, in turn, announced a strong increase in its customs duty on American goods.
“If the trade war escalates, it will have international ripple effects. Goods Norway imports will be affected, and this will also affect the price levels. Oil prices today have fallen because of a fear that the trade war will hit world trade and growth in the global economy, thus reducing demand for oil,’’ said Chen. However, he believes that it will take two to five years before Norway is seriously hit by the trade war.
On Friday, China’s recent figures showed that China’s trade surplus with the United States shot up in June, contrary to President Trump’s efforts to reduce it. Chinese exports to the United States grew by 13.6%, while imports from the US increased by 11.8 per cent.
© NTB scanpix / #Norway Today