The steel and aluminium tariffs recently imposed by the U.S. on the EU, Mexico and Canada would have an impact on Estonia through the economy of the EU, as has been the case with all sanctions, according to Economic Adviser to the President Heido Vitsur.
"The damage that would be caused by the absence of security and the uncertainty of future trends will definitely be greater than the damage caused by the imposing of steel and aluminium tariffs," Vitsur told BNS on Friday.
The extent of the direct damage, however, will depend on how the EU answers to U.S. tariffs.
"If Europe's answer would result in the U.S. imposing additional tariffs, the impact of imposing tariffs on each other could be felt quite quickly, but otherwise probably not," Vitsur explained. "We have to consider that the dependence of Europe on the U.S. market is much greater than the dependence of the U.S. on Europe, therefore U.S. would have the upper hand in that tariff war."
According to the economist, the most important concern regarding the steel and aluminium tariffs is not the direct damage, but the fact that the U.S. has begun to step away from a liberal economic policy.
The U.S. on Friday introduced sanctions on steel and aluminium from the EU, Canada and Mexico. The European Commission promised to launch the process of counter-tariffs on the U.S. immediately.
Editor: Aili Vahtla