Jens Stoltenberg, the former head of NATO, warned that the duties announced by Donald Trump and the trade war could lead to a repeat of the great crisis. – These types of historical comparisons remind us of what the game is going on and that we are heading towards a completely new world order – he said in an interview with Norwegian aftenplen.
Former boss NATOcurrently the Minister of Finance Norway, Jens Stoltenberg He assessed that the higher customs tariffs introduced by the Trump administration would cause economic uncertainty, which in 1929 was at the heart of the great crisis. Four years of economic collapse affected almost the whole world and every branch of the economy.
– Over the past 125 years, the reduction of duties has strengthened the economy, stimulated development and facilitated rising from economic difficulties. Their raising was an American response to the crash on the stock exchange in “Black Tuesday” in 1929 and in fact this decision caused a global breakdown and a catastrophic increase in unemployment – he reminded in an interview with the main Norwegian daily.
New world order
Jens Stoltenberg pointed out that also at that time the White House wanted to convince the company with higher duties to transfer production back to USAand the introduction of trade restrictions was to strengthen domestic entrepreneurs.
Although in an interview he tried not to speculate, he assessed that the announced by Donald Trump Customs decisions may establish a new economic order.
– These types of historical comparisons remind us of what the game is going on and that we are heading towards a completely new world order. The one we knew becomes threatened – said the Norwegian Minister of Finance.
The trade war will hit Norway
Norway, in Stoltenberg's opinion, will be particularly vulnerable to the effects of a possible trade war between the USA and China, Canada and Europe. Business will not direct its investments to places where to produce best and the cheapest, but where the duties will be the lowest, and this will be the reason for errors with long -term effects.
Jens Stoltenberg has already noticed the first effects of customs threats of the US president. – Since the beginning of the year, the value of our oil fund, in which we place income from the sale of raw materials, fell by one and a half trial of crown – summed up the Norwegian Minister of Finance.
Source of the main photo: Olivier Matthys/EPA/PAP