The world’s community has acknowledged that the trade war sparked off by US President Donald Trump will leave an imprint on the global economy. In early July, the US and China slapped with retaliatory import tariffs. However, apart from the main parties of the conflict there will be less evident victims among economies and currencies which are not involved directly. According to experts from Danske Bank, the trade jitters could deal a blow to the currencies of the Nordic countries.
It seems this statement lacks logic. It would make sense, speaking about the trade dispute between the US and the EU. In fact, experts are certain that twists in trade policy of Washington and Beijing will inevitably hurt small economies. For instance, Denmark depends on activity in transport logistics. So, any downturn in this sector will instantly affect the domestic economy, thus depreciating the national currency. Another vulnerable currency is the Swiss franc as the economy of this Alpine country heavily depends on China. The Hungarian forint is also under threat. Interestingly, the national currencies of both the US and China will suffer to the least degree. The yuan is being devalued because of manipulations of the People’s Bank of China. The US dollar will remain unaffected. The euro and the pound sterling are likely to show resilience in the lingering trade conflict.
The trade war was launched by the US. President Donald Trump is making determined efforts to ensure trade balance surplus in commercial relations with China and the EU. Alas, this goal will hardly be implemented.
