2 February 2025

Finland and the USA: Strong Allies with Shared Interests or a Trade Dispute?

Finland has always had excellent relations with the USA. As a sign of this, President Alexander Stubb has refrained from criticizing Donald Trump’s administration and has instead sought to understand its actions—even to the extent that some have speculated he is overly deferential to it.

There is, of course, an excellent explanation for Stubb’s and Finland’s approach: as a neighbor of Russia—and following the era of Finlandization, when the country had to be cautious in its dealings with the Soviet Union—Finland is now heavily dependent on NATO and, consequently, the USA to guarantee its military security. Nevertheless, Finland will remain a state governed by the rule of law, firmly committed to defending the inviolability of national borders against all major powers. This applies to Denmark as well.

In this context, it is extremely unfortunate that President Trump is threatening the EU—and, by extension, Finland—with trade tariffs that would hinder transatlantic commerce. Such measures would be particularly harmful to open economies like Finland’s, whose prosperity relies heavily on foreign trade. It would not be beneficial for the United States either, as it could negatively impact the very positive attitude that Finns generally have toward Americans.

It remains to be seen whether Trump and his administration understand this and seek to balance trade between the USA and the EU through other means. Moreover, in the end, high US tariffs would be paid by ordinary American voters, which is unlikely to increase Trump’s popularity in his own country.

After all, there are plenty of people in the US who struggle to cover their daily expenses. And they certainly did not vote for Trump so that he would plunge their personal finances into even greater hardship.

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Finally, I would like to share a message with my American readers from my country’s Minister for Foreign Trade, Wille Rydman (Finns Party). At the end of last week, he made the following remarks:

"The United States has been focused on utilizing Alaska’s mineral resources. Here, Finland’s world-class geological expertise can offer significant contributions. The U.S. plans for Alaska have also emphasized the development of basic infrastructure, particularly in telecommunications, an area where Finland has strong capabilities."

"The U.S. has also prioritized improving its situational awareness in the Arctic. There is room for development in sensor technology, measurement and monitoring systems, and the utilization of space technology. Finland has expertise in all these fields."

"We are working to open markets through ICE Pact cooperation, which could allow Finnish shipyards to contribute their capacity to icebreaker construction. North America faces a shortage of shipbuilding capacity, making this a fantastic opportunity for our shipyards... We have the knowledge and capability to build the best icebreakers quickly and at a competitive price. Finnish maritime industry companies have supplied icebreaking technology for the most powerful polar icebreakers, Baltic Sea escort icebreakers, as well as smaller river and port icebreakers. Our expertise is extensive, and the industry operates on a global scale."

I sincerely hope that these considerations reach President Trump’s administration and encourage it to foster cooperation between Finland and the EU—natural allies of the United States—rather than risk a trade war that would harm all parties involved.

2 comments:

  1. I really hope POTUS knows what he is doing, or at his advisers know what to do and Trump having an ear for them.

    ReplyDelete
  2. Trump has ordered more soldiers to the Mexican border to protect his country from illegal immigrants.
    The EU could take a leaf out of Trump's book - and end the Mediterranean taxi traffic.
    It should also stop Africans being shipped to the Canary Islands.

    ReplyDelete

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