Asgeir Jónsson, Governor of the Central Bank of Iceland, has outlined the potential effects of US tariffs on the Icelandic economy, reassuring the public that the nation can handle it.
Speaking in an interview with Bloomberg’s Francine Lacqua, he emphasised the country’s strong position in seafood exports, as well as took a measured view on the risks facing other sectors.
“Our main export to the US is fish. Iceland is big in fish, we have some pricing power there,” Asgeir said, highlighting Iceland’s ability to negotiate favourable terms for its primary export. He did, however, note that other industries could face greater challenges if additional duties were imposed.
“We can manage”
“Our main worry would be if there would be a tariff on pharmaceuticals to the US, but we can manage a 10% tariff,” he added. He also indicated that while the pharmaceutical sector is less dominant than fisheries, a modest levy would not overwhelm the economy.
Many will take the Governor’s comments as a reflection of confidence in Iceland’s trade structure, no less its capacity to absorb moderate external shocks. Throughout the discussion, he maintained that prudent monetary policy and a diversified export base will help safeguard growth, even amid the shifting trade dynamics currently taking place worldwide.
