In ten days, Donald Trump will take office as president for the second time in the United States. Trump has previously said that he wants to raise trade tariffs by 60 to 100 percent against China and roughly 20 percent against the EU, which will affect Sweden – but it is still uncertain how.
– The USA is Sweden’s third most important trading partner, we only trade more with Germany and Norway. We therefore trade more with the USA than we do with Finland, Denmark and Great Britain. It is a very important trade partner for us, says Carl Bergkvist, chief economist at the Stockholm Chamber of Commerce.
According to the state authority Kommerskollegium, up to 16 percent of Sweden’s trade could be affected or disappear.
– We estimate that up to SEK 80 billion in the world of trade between the USA and Sweden can be affected. But what we lose in trade with the United States, we can make up with other countries.
“Just like a schoolyard fight”
Jan Larsson, who is the CEO of business Sweden, says that he senses a concern among Swedish entrepreneurs.
– Exports may become more expensive, but the businesses that are already in place in the US may even benefit from this policy, says Larsson and continues:
– But tariffs are never good. Over the past hundred years, we have learned that free trade is a win-win situation.
There is also a risk that the EU responds by introducing its own trade tariffs against the US.
– It’s just like a fight in the school yard. If one person mucks, nothing happens, but if someone fights back and more people join in, chaos ensues. Now it is at least as important how the EU and other world politicians respond to this.
The entrepreneur: Fun with challenges
The Swedish company Hatstore, which exports hats and caps, has a turnover of SEK 15 million annually in the USA alone.
– The USA is the homeland of the cap. It is a very important market and a significant part of our turnover, says Niklas Nordheim, CEO of Hatstore.
But Nordheim is not worried at the moment and emphasizes that the company sees the challenges with the tariffs as part of entrepreneurship.
– We think it’s a bit of fun with challenges. We always find other ways to go.