Swedish Industries Grapple with Rising Trade Barriers and Stricter Sanctions Compliance

Swedish companies are facing significant challenges due to new trade barriers and escalating tariff tensions, particularly between the US and EU. Experts Mattias Hedwall and Olof König from Baker McKenzie advise that businesses must develop proactive strategies to adapt their models and mitigate these impacts. A critical step is conducting a thorough review of supply chains—from raw material procurement through to product valuation and sales—to accurately assess cost drivers and financial implications.

Alongside tariffs, compliance with increasingly stringent sanctions is becoming more complex. König emphasizes that the EU’s introduction of extraterritorial sanctions represents a major shift, demanding internal policy adjustments and enhanced oversight, including for subsidiaries beyond the EU borders. In this evolving regulatory landscape, maintaining clear communication with key partners like banks, logistics companies, and insurers remains vital to ensuring aligned risk management.

The easing of sanctions against Syria was cited as an example where new business opportunities arise, though financial institutions continue to exercise caution. Baker McKenzie, with a presence in over 40 countries and extensive expertise, supports companies in navigating compliance programs involving sanctions, export controls, and tariffs to better manage these multifaceted challenges.