EU-US Customs Talks in Critical Phase Amid Trade War Concerns

A new round of talks between the EU and the USA to avoid a full-scale customs war has begun, with single days left on President Donald Trump's so-called customs pause. We are in a critical situation right now, says Sweden's Minister for Foreign Trade Benjamin Dousa (The Moderate Party).

» Published: July 03 2025

EU-US Customs Talks in Critical Phase Amid Trade War Concerns
Photo: Martin Meissner AP/TT

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From the EU side, the talks are led by Trade Commissioner Maroš Šefčovič, who is currently visiting Washington DC.

It is exactly this situation that we in Europe have tried to achieve for several months. What is positive in this is that very concrete negotiations are taking place right now, says Benjamin Dousa.

"Want to avoid trade war"

Previous contacts between the EU and the US have been characterized by general-level talks and formalities, according to Dousa. How the more concrete talks that are currently underway will end is, however, difficult to say anything about.

We want to avoid a trade war, but there is still a risk that the US will drag us into one, he says.

He hopes for a solution, even if zero tariffs and free trade seem distant.

Just the volatility, the uncertainty - that from one hour to the next, you can get completely new conditions as an entrepreneur in Europe and Sweden - also damages trade.

We want more trade with the US. It is an important trading partner.

According to the news agency Bloomberg, major companies in Europe - such as Mercedes-Benz and LVMH Moët Hennessy Louis Vuitton - have taken their own contacts about the tariffs with the Trump administration. Among other things, they are said to have discussed how the EU governments can be pressured to accept unfavorable US tariffs on EU goods and to make a deal quickly with the Trump administration.

There are also pressures to get products from the EU's list of countermeasures against the US removed - tariff increases that can be made if an agreement cannot be reached.

It may very well be that companies in Europe have direct contact with the US government. But from Europe's side, we do this in a very analytical way. It is important that we stick together, says Dousa.

Common interest

He describes the cohesion between the EU governments as "very good".

But we will, of course, at every given opportunity, naturally protect the Swedish economy and Swedish jobs.

Besides the Trump administration's tariffs of 10 percent on everything from the EU, Dousa wants to see a focus on the 25 percent tariffs on cars and car parts, as well as the 50 percent tariffs on industrial metals that have been introduced.

The tariff that hits hardest against Swedish jobs and Swedish industry right now is the sectoral tariff on vehicles and vehicle components, where Volvo Cars - to speak clearly - is one of our largest private employers. It is clear that we have a common interest with Germany, not just to focus on the general tariffs but also on the sectoral tariffs.

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