As April 14, 2025, unfolds, Sweden finds itself navigating the complexities of the global trade war, particularly in response to U.S. tariffs on European exports, China’s retaliatory measures, and shifting trade alliances. With new tariffs on steel, aluminum, and technology imports, Swedish industries are bracing for economic shifts that could impact manufacturing, exports, and consumer prices.

Sweden’s Position in the Trade War

Sweden, as a key member of the European Union, has been affected by the U.S. tariffs on European steel and aluminum, which range from 4.4% to 50%. These tariffs have raised concerns among Swedish manufacturers, particularly those in the automotive and industrial sectors, which rely on steel imports and exports.

Additionally, Sweden’s technology sector is monitoring the U.S. semiconductor tariffs, as Swedish firms rely on global supply chains for electronics and telecommunications equipment.

Swedish Steel Industry Impact

The Swedish steel industry, which exports high-quality steel products to the United States and China, is facing higher costs due to tariff increases.

• Exports to the U.S. are now subject to higher duties, making Swedish steel less competitive in the American market.
• China’s retaliatory tariffs on European goods could further limit Swedish steel exports, affecting major producers like SSAB and Ovako.

Sweden’s Trade Relations with China

China’s 125% tariffs on U.S. imports have led to shifts in global trade patterns, with Sweden exploring alternative trade agreements to mitigate risks.

• Swedish companies are strengthening ties with China, particularly in renewable energy and technology sectors.
• Swedish automakers, including Volvo and Scania, are adjusting supply chains to reduce dependency on U.S. markets.

Market Reaction in Sweden

The Swedish stock market has responded to global trade uncertainty, with industrial and technology stocks experiencing volatility.

• Steel and aluminum futures have declined, reflecting concerns over excess supply.
• Automotive stocks have fluctuated, as manufacturers assess tariff impacts on exports.

Sweden’s Next Steps

With trade tensions escalating, Sweden is expected to:

• Engage in EU-wide negotiations to counteract U.S. tariffs.
• Strengthen trade agreements with China and other Asian markets.
• Support Swedish industries through government incentives and subsidies.

As Sweden adapts to the changing global trade landscape, businesses and policymakers are working to ensure economic stability while minimizing disruptions.