Tariffs on Icelandic goods increased

U.S. President Donald Trump has signed an executive order imposing new tariffs on imports from dozens of trade partners. The tariffs will range from 10 to 41 percent.

Notably, tariffs on goods from Iceland will rise from 10 percent to 15 percent. Tariffs on goods from Canada will increase from 25 percent to 35 percent.

Room for negotiation

The White House has announced that the measures will not take effect for another week, which is believed to allow time for further negotiations with affected countries.

The action is intended to strengthen the position of American exporters and stimulate domestic production. However, it has also raised concerns about potential inflation in the U.S. and created uncertainty among some of the country’s closest allies.

Minister: Increase is disappointing — meeting requested

Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir says the tariff increase on Icelandic goods is disappointing and unexpected. Iceland will request talks with U.S. representatives immediately.

“First of all, I don’t consider tariffs to be a good thing. I simply think they are harmful, and they do not benefit households or businesses in our country,” Gunnarsdóttir told mbl.is .

“We will discuss this decision”

“This is very disappointing and comes somewhat as a surprise. Earlier this summer, I took the initiative to write a letter to the U.S. trade representative, highlighting the strong and longstanding trade relationship between our two nations — and how trade has benefited both Iceland and the United States.”

She says it is now clear that the economic indicators between the countries do not align, and that this needs further examination.

“I will immediately request that formal talks be initiated on this issue, and we will discuss this decision with our close ally.”