Kristersson Calls EU-US Customs Agreement Both Sweet and Sour

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Kristersson Calls EU-US Customs Agreement Both Sweet and Sour
Photo: Caisa Rasmussen/TT

Prime Minister Ulf Kristersson (The Moderate Party) says that he thinks "both and" about the customs agreement that was concluded between the EU and the USA on Sunday evening. There is really both sweet and sour in this agreement, he says.

That the US tariffs against the EU are now the highest in 70 years is "basically bad", according to Kristersson. Lower tariffs "would have been much better".

On the other hand, it is an agreement that lands at significantly lower levels than those that there was a risk for, he says to TT.

It creates predictability for Swedish companies that dare to make investments.

It was late on Sunday that the US and EU agreed on American import tariffs of 15 percent on goods from the EU. Before April 3 - the day when President Donald Trump launched the new tariffs - they were around 2.5 percent. Since then, EU exporters have paid around 10 percent tariffs on goods sent to the US.

Difficult to negotiate for all

Kristersson says that he believes that most people in Europe think that it was most important to come to an agreement, just so that companies dare to make new investment decisions.

Did the EU give in too easily?

I do not know Ursula von der Leyen as a person who gives in easily. I think everyone understands that negotiating on behalf of 27 countries is complicated, he says, referring to the fact that not all countries in the union are as dependent on exports as Sweden.

He believes that there was a risk of a trade war with "completely devastating consequences for all European trade".

I do not think they gave in too easily, but with that said, lower tariffs would have been much better.

Exactly what consequences the tariffs will have for the Swedish part is still uncertain, since many details are not yet finished.

Then we hope that a number of sub-negotiations that are not yet finished can land at zero percent for the US and zero percent for the EU.

Know what applies

Finance Minister Elisabeth Svantesson (The Moderate Party) says in turn that the agreement is bad for the Swedish economy.

The tariffs lead to reduced demand and lower growth, with a risk of even higher unemployment, she says.

But she also thinks it's good that an agreement has been reached. The uncertainty in recent months has worn down both Swedish growth and households and businesses.

An agreement simply provides predictability, now you know what applies and so we can move on from there, says Svantesson and adds that the government will do everything to ensure that growth gets going.

It is the policy we pursue to compensate for this trade war that is currently ongoing.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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