The clock struck five on Wednesday morning Swedish time, when the clock struck midnight in Washington, the tariffs began to apply. They affect all countries and can be a hard blow to both Swedish and European companies.
"In response, the Commission is launching a range of countermeasures to protect European companies, workers and consumers from the effects of these unjustified trade restrictions," writes the EU Commission in a press release.
A total of 26 billion euros of EU exports are affected by the American tariffs, which corresponds to approximately five percent of the Union's total goods exports to the USA, notes the EU. The bill for American importers amounts to 6 billion euros.
Bourbon and Motorcycles
In response, the EU is reintroducing tariffs on American goods such as boats, motorcycles and bourbon – the same as used in 2018 and 2020, in response to Trump's steel and aluminum tariffs during his first term.
But this time, the American tariffs are stronger. The EU therefore intends to introduce additional countermeasures to ensure that the total value of the countermeasures matches the American ones.
A new package will therefore be outlined during a two-week consultation process, to ensure that the right products are included in the new countermeasures.
The reintroduced countermeasures will come into force on April 1 and the new package is expected to be ready by mid-April.
Trade War Escalates
Trump announced the import tariffs in February. No exceptions have been granted since then.
President Trump has previously warned of further tariffs against the EU and Sweden, on "cars and all other things" and some form of announcement is expected on April 2.
Uncertainty surrounding Trump's trade war and concerns that it could tip the world's largest economy into a recession have also characterized financial markets in recent days, with a decline in leading indexes on Wall Street this week.
On Tuesday, it heated up between the USA and Canada, when Trump threatened to double the percentage, 50 percent, on Canadian steel and aluminum. But Trump withdrew the threat, after the Canadian province of Ontario agreed to pause a 25 percent surcharge on electricity prices for 1.5 million households and businesses in the American border states of Minnesota, New York and Michigan.
