After last week's customs shock – when Donald Trump announced 25-percent tariffs on all vehicles and vehicle components manufactured outside the USA – new announcements from the president on further tariffs are expected on Wednesday.
In advance, Trump has described Wednesday as "liberation day" – for the USA. Like many others, Elisabeth Svantesson views with concern the possibility of a trade war with the country.
It is alarming but unfortunately not surprising, as we have seen these signals in different areas in recent weeks, says Svantesson.
Exactly what it will entail is difficult to know at present. But it is clear that significantly higher tariffs will hold back the Swedish economy and the global economy.
EU well prepared
According to Elisabeth Svantesson, the EU is engaged in a dialogue with the American administration to try to avoid further escalation. Whether the talks will result in a constructive solution is too early to say, she claims.
But naturally, the EU is well prepared and will have a straightforward and clear dialogue with the USA. We will not bow and scrape – on the contrary, we must stand firm.
How will the EU respond to the American tariffs?
It depends. We must wait and see how the proposal turns out. Then we'll ask ourselves where it hurts them the most and partly act accordingly.
"Concerning"
The Minister of Finance was in Gothenburg on Monday to visit AB Volvo and Volvo Cars – two companies that risk being severely affected by the tariffs on the automotive industry. Not least since the USA is an important market for the Swedish automotive sector.
It is concerning, as higher tariffs are not good for the Swedish automotive industry, nor for the USA in the long run, says Svantesson.
