On Wednesday evening, US President Donald Trump is expected to present his major customs package. Moreover, customs duties on all vehicles manufactured outside the USA will come into effect during the week.
Principally, we view this seriously. I think the entire EU does, although Sweden, more than others, is a country that has learned through history that free trade is very good.
It builds strong companies, creates better products, better relations between different countries.
Unclear Effect
However, it is unclear exactly what effect it will have on the EU, says Ulf Kristersson to TT in connection with his visit to Västernorrland Regiment in Östersund.
We will respond jointly in the EU. I spoke with Ursula von der Leyen a few days ago and discussed different scenarios ahead. We are well-prepared for it to go badly, but it would be much better if we didn't enter a process with different countries raising tariffs against each other.
Trump hopes that the new customs duties will lead to the construction of more factories in the USA and an end to the "ridiculous" production chain that stretches into neighboring countries.
EU a Power Factor
The administration expects the customs duties to generate 100 billion dollars in annual tax revenue.
The EU is a power factor in this. We do not want trade wars and we do not want to create any escalation. But the EU is a block with 450 million consumers that has significant power, says Kristersson.
Finance Minister Elisabeth Svantesson also emphasizes the importance of an EU that works together and pushes back. She predicts that the customs duties may hit Sweden, not least the automotive industry, hard.
It's serious and bad, but we'll manage, she says to TT.
Sweden stands on a stable ground, both politically and economically. We have the muscles to get the economy going and meet tougher times.
