Tariff Turbulence: Swedish Exports at Risk Amid U.S. Trade Threats

Swedish exports to the United States face a potential decline of up to 28% due to tariff threats from President Donald Trump. Key sectors like electronics and steel could witness significant downturns, impacting Sweden's third-largest market. The U.S. accounted for 9% of Swedish exports in 2024.

Swedish exports to the United States are facing potential jeopardy as President Donald Trump has threatened to impose additional tariffs, potentially slashing exports by up to 28%. This warning, confirmed by Sweden's Board of Trade on Tuesday, comes as Trump targets various European nations that have deployed military personnel to Greenland.

The intent to levy tariffs starting at 10% and rising to 25% by June aims to coerce a deal for the U.S. acquisition of Greenland. The Board of Trade predicts a stark decline in Swedish exports to the U.S., with expectations of a 6% reduction over the next three to five years if existing tariffs remain untouched.

Key industrial sectors, notably iron, steel, and electronics, are under severe threat. These sectors could potentially see declines of 25% to 50%, slashing Sweden's exports to the U.S., a pivotal market, which contributed 9% or 186.5 billion Swedish crowns in 2024. Other major exports, including vehicles and machinery, are also likely to be affected.