Customs duties are always bad. But there is no dramatic effect on our growth and our economy, says Benjamin Dousa about the effect of Donald Trump's new copper customs duties, which are scheduled to come into force on August 1.
Previously, the US has applied general customs duties on all goods from the EU of 10 percent and so-called sectoral customs duties at significantly higher levels on cars and car parts as well as steel and aluminum. He has also flagged 200-percent customs duties on pharmaceutical exports to the US in a few years' perspective.
Ready to introduce countermeasures
The goal is to lower customs duties, if the US also lowers, but Sweden and the EU are ready to introduce countermeasures, according to Dousa.
An EU package with customs duties on US goods for 25 billion euros has already been approved and is ready to strike. Another package with EU customs duties on US goods for nearly 90 billion is in progress.
Dousa says that Sweden has now taken a new initiative to also lower customs duties for other WTO countries that export to the EU when it comes to the goods affected by increased customs duties due to countermeasures against the US.
They should have as little effect on the Swedish economy and Swedish companies as possible, he says.
Can accept 10 percent customs duties
The EU is, according to information in several major media - such as the Financial Times - close to a temporary agreement on customs duties with the US. The EU is, according to the newspaper's sources, willing to accept general US customs duties of 10 percent during the time that talks continue.
This agreement would, in that case, be in line with what the United Kingdom agreed with the US on earlier in May.
Publicly, the EU has not wanted to comment in detail on the various leaked information from the past few days. The President of the European Commission, Ursula von der Leyen, said in a debate in the European Parliament on Wednesday only that they continue to work "closely with the US administration" to reach an agreement.
