It is hard at this point in time to assess the impact of newly inaugurated President of the United States Donald Trump on the global and European economies, some economic analysts in Estonia say, since it is unclear which pledges he will get to fulfill, and to what extent.
On the one hand, Trump’s proposed tariffs would likely have a negative impact on European trade; on the other, his actions could help reduce energy prices, which would have a net positive effect on the economies of these countries, experts argue.
Speaking to “Aktuaalne kaamera” on the day of Trump’s inauguration, economic analyst at SEB Pank Mihkel Nestor said: “Trump’s negotiation tactic is to instill shock and awe, forcing everyone into a weaker position at the negotiating table, but where we will ultimately end up with that, we cannot say.”
“It is impossible to understand exactly what he aims to achieve with these tariffs, be it to protect domestic industry, penalize someone, secure better negotiating terms, or to pressure others to make concessions to the U.S. It’s unclear, but tariffs will certainly have a dampening effect on the economy [of Estonia],” Nestor went on.
Meanwhile Peeter Koppel, head of investments at Redgate Wealth, said: “I suspect this is all about creating a stronger negotiating position,” with respect to tariffs.
More read: ERR.EE