Sweden is bracing for an economic slowdown following the United States’ recent decision to impose new tariffs on imported goods from European Union, a move the Swedish Government has described as more harmful than initially expected. During a press conference held on Wednesday, Prime Minister Ulf Kristersson (Moderaterna), Finance Minister Elisabeth Svantesson (Moderaterna), and Trade Minister Benjamin Dousa (Moderaterna) outlined the potential consequences for the Swedish economy and announced new measures to respond.
“Yesterday’s message is likely to be more harmful than many expected,” said Kristersson, referring to the decision by former US President Donald Trump to raise import tariffs. While the government was not surprised by the move, its economic implications have raised concerns across multiple sectors.
Tariffs threaten jobs, demand, and economic momentum
Finance Minister Svantesson warned that the tariffs could result in reduced demand, slower growth, and job losses in Sweden. “Tariffs are bad. They affect Swedish jobs, they will affect Swedish demand and growth,” she said. While emphasizing Sweden’s relatively strong economic position compared to other EU countries, Svantesson acknowledged the uncertainty ahead.
According to estimates from the Finance Department, the increased tariffs could result in Sweden’s GDP being 0.15 to 0.4 percent lower than it would have been in the short term.
Trade Minister Dousa echoed this concern, stating, “We must be prepared for the economy and growth to be affected.” He added that the government understands the anxiety among Swedish citizens regarding the potential impacts on household budgets and employment.
Sweden to push for negotiation over escalation
Prime Minister Kristersson stressed that Sweden remains committed to defending free trade and preventing the escalation of trade wars.
“Our goal is not more trade barriers, not trade wars but to resolve this through negotiations,” he said.
The Government plans to involve both business organizations and trade unions in discussions on how to respond, and will maintain dialogue with Swedish companies regarding which US goods the EU should exclude from retaliatory tariffs.
Impact on USA inflation, not Sweden’s
While the tariffs are not expected to significantly influence Swedish inflation, Svantesson noted that the short-term effects will likely be felt more acutely in the United States. “It will first and foremost affect American inflation; inflation will likely increase there in the short term,” she explained.
The Swedish government has committed to supporting the national economy and households in navigating the challenges ahead. “We do what we can to support the economy and households, it will give a boost,” Svantesson stated.
A test for Sweden’s economic resilience
Despite the uncertainties, officials emphasized Sweden’s comparative strength within the EU. “Sweden is better equipped than many other EU countries. We can still act, unlike many other countries that do not have the muscles,” said Svantesson.
As Sweden confronts this challenge, the government’s stance remains clear: it will advocate for open markets and international cooperation, even in the face of protectionist measures from key global partners.
