If the United States introduces customs, it can adversely affect Swedish companies in several ways.
The vast majority of Swedish export companies have long supplier chains where components are manufactured in a continent, sent a long way to become a module and then be sent again to be put together in a factory. This means that tariffs can create increased costs in several stages.
When Donald Trump threatened with tariffs against Mexico last week, both Electrolux and Autoliv, which have factories in Mexico, announced that tariffs would mean higher prices on their products.
Those tariffs have been paused, but Trump is now talking about imposing customs on all imports of steel. Eight percent of Swedish steel exports (worth SEK 5.8 billion) goes to the United States. It is the largest market outside the EU.
SSAB can earn on customs
There, Swedish steel giant SSAB can become a winner as the company has great steel production in the US and therefore the customs that many competitors are forced to pay. The share shot up during the day.
– It can hit different companies. Trump introduced customs also in 2016. At that time, the steel industry’s exports to the United States fell from 8 to 6 percent of total exports, says Mathias Ternell at the Jernkontoret business association.
Today, customs are replaced by an agreement between the US and the EU on a duty -free quota. That that agreement is now at risk of change as a result of Trump was expected, according to the Iron Office.
But it is not good for the steel industry. Last year, steel exports to the United States were SEK 5.8 billion. The Iron Office estimates that this figure can decrease by about 25 percent.
Worrying and serious development
Maria Rosendahl at Teknikföretagen, whose members have one million employees thinks that the development, where Trump threatens with many different customs, is worrying and serious.
– Customs means increased costs. It is generally bad. And besides, we do not know what will be the counter -reactions from China or the EU. There may be more customs and trade war, it is a serious situation.
At Electrolux you can exhale, but maybe only temporarily. No one knows exactly which of Trump’s promises or threats.
– We follow the development, but we cannot adapt supplier chains until we see what actually becomes a reality. Now the tariffs have been paused against Canada and Mexico, we think that is good, says Electrolux press manager Paul Palmstedt to SVT.