Concerns Rise Over Potential US Tariffs and Their Impact on Swedish Exports
Experts warn of disastrous effects on Sweden’s exports from Trump’s proposed US tariffs.
Key Points
- • Trump threatens 30% tariffs on EU imports, impacting Swedish exports.
- • Economists view tariffs as a negotiation tactic with predicted reductions to around 10%.
- • EU likely to continue negotiation strategy while preparing countermeasures.
- • Historical data shows trade wars often harm economies, including the US and EU.
Amid growing tensions, former President Donald Trump's threat to impose a staggering 30% import tariff on imports from the European Union has raised alarm among Swedish export industry experts. Robert Bergqvist, a senior economist at SEB, expounded on this issue, viewing Trump's move as a negotiating tactic designed to exert pressure on the EU amidst ongoing trade discussions. He describes the situation as 'devastating' for Sweden's export sectors, which could face substantial setbacks if the tariffs are enacted.
Bergqvist pointed out that Trump's dissatisfaction with the pace of negotiations is likely propelling these aggressive threats, suggesting that they are aimed at instigating uncertainty within EU markets. Despite the looming 30% figure, he speculates that market dynamics could moderate the potential impact, predicting that any final tariffs may end up around 10%, owing to market reactions that often temper aggressive trade policies.
Per Altenberg, the chief economist at Kommerskollegium, supports this viewpoint, expressing that while the EU seems poised to maintain its strategy of negotiation, they are simultaneously preparing countermeasures in the face of potential fallout. Altenberg also noted that such high tariff rates would contravene the United States' commitments to the World Trade Organization, calling into question the long-term implications of Trump's policies and the unpredictability they bring to global trade.
Both economists agree that a trade war could yield negative ramifications not only for Sweden but also for the broader US economy, with historical precedents from previous tariff disputes with countries such as Canada and China showing that retaliatory measures often lead to unwanted economic repercussions. In light of this, experts voice concerns that a trade escalation could adversely affect global economic conditions and add further strain to an already complex international trade landscape.