As Sweden's third largest trading partner, trade with the USA amounted to 562 billion kronor last year.
With Donald Trump at the helm again, 80 billion of these are at risk of disappearing due to increased tariffs, according to calculations made by the Stockholm Chamber of Commerce.
Trump has been very clear that he will raise tariffs against the rest of the world by up to 20 percent and against China by 60 percent. He's doing it to protect American jobs and to finance tax cuts, says Carl Bergkvist.
But it risks having negative consequences for an export-dependent country like Sweden if the USA takes a more protectionist direction, he continues.
"Much worse"
Bergkvist believes that trade with other European countries would likely cover the loss of billions – but is worried about what happens in the long term.
It's likely that both the EU and China will respond to the tariffs, and if that means we're heading towards a trade war, the consequences will be much worse for an export-dependent country like Sweden, says Bergkvist.
In an analysis from the National Board of Trade – released in October – it is stated that the tariffs Donald Trump wants to introduce as president would drive up costs for both companies and consumers and create global inflation.
The automotive industry is pointed out as particularly vulnerable.
Important to negotiate
Anna Stellinger, head of international and EU affairs at the Confederation of Swedish Enterprise, believes it's important to act. She points to several lessons from Donald Trump's previous term. Among other things, that Trump is a person who likes to negotiate.
Through the EU, we will need to sit down at a negotiating table with Donald Trump as soon as possible. Then we must keep a cool head and not contribute to an escalation that could ultimately lead to a trade war, says Stellinger.
