Swedish Industrial Sector Navigates Rising Tariffs and Tighter Sanctions with Strategic Adaptations

Swedish industrial companies are currently grappling with significant challenges stemming from heightened tariffs between the US and EU, alongside increasingly stringent international sanctions regulations. Experts Mattias Hedwall and Olof König, partners at Baker McKenzie, emphasize that businesses must proactively adjust their models to mitigate tariff-related costs and regulatory risks.

The rising tariffs have escalated costs, prompting companies to conduct comprehensive reviews of their supply chains—from raw material acquisition to the pricing and sale of finished products—to pinpoint and manage expenses effectively. This review extends also to transfer pricing and corporate tax considerations. König notes that Swedish firms are reevaluating their production locations and market strategies as part of these adjustments.

Sanctions compliance has become more complex, with new EU regulations demanding enhanced oversight, including subsidiaries outside the EU. Authorities are heightening expectations, requiring rigorous compliance measures to prevent trade circumvention. Maintaining consistent communication with stakeholders such as banks, insurance providers, and logistics partners is vital for thorough risk assessment and collaboration.

Moreover, easing of sanctions against Syria has opened fresh business opportunities, though financial institutions remain cautious in the face of evolving risk environments. Baker McKenzie, with its extensive global presence and expertise in sanctions and trade regulation compliance, stands prepared to assist Swedish companies in navigating this challenging landscape.