Swedish Candy Industry Grapples with New US Tariffs
The new US tariffs on EU goods impact the Swedish candy industry, especially So Sweet, prompting strategic adjustments.
- • US tariffs impose a 15% duty on EU goods, affecting Swedish candy exports.
- • So Sweet, founded by Emil Ernstsson, has generated over 20 million kronor in revenue in its first year.
- • Ernstsson considers expanding into Canadian markets due to the tariffs.
- • Despite challenges, So Sweet plans to stay in the US market and not relocate production.
Key details
The Swedish candy industry is facing significant challenges following the recent imposition of a 15% tariff on most EU goods exported to the United States. This notable policy change, enacted under Donald Trump's administration, is particularly impacting companies like So Sweet, a candy business launched by 22-year-old Emil Ernstsson and his partner, Stefan Reuter. Despite the adverse effects of the tariffs, which Ernstsson describes as painful compared to a previous 10% tariff, So Sweet has managed to generate over 20 million kronor in revenue within just a year of its establishment.
Ernstsson emphasizes the necessity of maintaining focus during these tumultuous times as they adapt to the evolving market landscape. In light of the tariffs, he is exploring opportunities in other international markets such as Canada, however, he is determined to retain a presence in the US market, stating, "It’s about staying focused and ensuring the business continues to operate, and everything will resolve itself with time."
The rise of Swedish candy, fueled by social media trends, has amplified its demand in the US, yet the tariffs pose a formidable barrier that may require strategic adjustments. While relocating production to the US is deemed unfeasible due to the brand’s strong Swedish identity, So Sweet is committed to weathering this storm and identifying new paths forward in response to changing trade dynamics.
As the industry continues to navigate these challenges, the implications of the tariffs extend beyond just So Sweet, marking a significant period of adaptation within the Swedish candy sector.