Tariffs of 25 percent on steel and aluminium can, if they come into force, be a hard blow to Swedish and European companies in the industry.
Now Sweden and the EU need to parry, according to Foreign Trade Minister Benjamin Dousa (M) - in a responsible manner.
It is important that the EU's response is proportionate and well-balanced so that it does not hit Swedish companies and consumers in a disproportionate way, he says.
No concrete
President Trump has previously warned of further tariffs against the EU and Sweden, on "cars and all other things" and on April 2, some form of message is expected.
There is nothing concrete on the table now, but if it becomes so, it will mean tougher responses from Europe, says Dousa.
What the tariffs will mean for the Swedish and European economy is being analyzed fully. A concern is that the WTO system is being put to the test and what it can lead to.
Just the uncertainty itself has a price, companies are holding back on major investments because they do not know what the rules will look like in a few months, says Dousa.
New markets
For the EU's part, it will be important to open up new markets, something that is underway through negotiations on free trade agreements with, among others, India and Mercosur (the southern common market) and Mexico. On Wednesday, a new free trade agreement was also signed - on digital trade with South Korea.
Moreover, according to Dousa, one needs to counter by simplifying the regulatory burden for Swedish and European companies.
We want to roll back and stop new rules in the EU, he says, and adds that both a free trade offensive and a simplification offensive are needed in light of the US's protectionist policy.
