is Sweden preparing a tough retaliation together with the European Union against Donald Trump's new tariffs recent reports suggest that the quiet giant of the north has no intention of keeping quiet while the United States tariffs on steel and aluminum followed by protectionist policies on Automotive have shaken the European Union the message of we are in from the Swedish side is getting louder and louder protecting our steel and aluminum Industries is a must and today I'm simplifying our tariffs and Ste and aluminum so that everyone can understand exactly what it means it's 25% without exceptions or
exemptions from Volvo to Scania from high-tech engineering firms to Life Sciences Investments Swedish industry has written a success story known around the world but could Trump's new tariffs turn this tail on its head or will the Swedish Miracle join hands with Europe to stand up to the United States Welcome to our Channel if you are interested in the behind the scenes of such global trade moves do not forget to subscribe turn on your notifications and like this video because what you are about to hear and watch Will Reveal how the Scandinavian region is preparing for
a transformation and what the Trump Administration is bringing to the agenda let us get started some experts are not surprised that the Swedish government is taking a common position within the European Union Sweden is a clear advocate of free trade and globalization its export oriented economy sells a significant amount of goods to the United States Market Sweden which excels in high value added sectors such as Automotive Pharmaceuticals engineering and Life Sciences would never want tensions with the United States to escalate however Trump's America first slogan and the accompanying tariffs have led the stockhome administration to
the point where we have no choice but to Counterattack shoulder-to-shoulder with the European Union from this day forward it's going to be only America first America first but what will be the scope of this retaliation according to reports Sweden wants to be ready for United States tariffs not only on steel and aluminum but also on critical sectors such as automotive and white goods speaking at his first cabinet meeting United States President Donald Trump announced his plan to hit the European Union with a 25% tariff uh we have made a decision we'll be announcing it uh
very very soon and it'll be 25% well you're asking me a question uh because I'm sure you didn't hear am I going to impose tariffs on the European Union we have made a decision and we will announce it very soon it will be 25% he said Swedish Minister for International Development cooperation and foreign trade Benjamin daer said in a statement that there is no winner in tariff Wars the introduction of tariffs is worrying frankly we do not think this is a good thing as the government has repeatedly said everyone loses from tariffs as they cause
unnecessary economic disruption and are very costly I would like to underline the importance of continuing to work for free trade dusa also reaffirmed Sweden's commitment to work within the European Union framework to formulate a measured response the European Union will respond appropriately it is important for Sweden that the countermeasures agreed jointly in the European Union are proportionate and balanced and that we naturally protect Sweden's interests in these discussions as a government we are in constant dialogue with the European Union commission the Swedish business community and other member states dusa said Swedish companies are preparing contingency
plans to address the question what will we do in logistics and Supply chains if the tariffs come into Force business Sweden reports on the supply side Global Giants such as Volvo Scania and SKF are in private discussions with customers in the American Market at the same time the question is how will the Nordic countries be affected if the European Union responds with a series of tariffs could Sweden turn such a crisis into an opportunity because some say that Sweden has been looking elsewhere for a long time while interest in Swedish engineering firms is growing in
the Asian market the image of Scandinavian technology is a strong alternative in the Gulf countries and even in Africa in other words even as tensions with the United States increase it is possible to open new doors by turning to other parts of the world however there are those who ask how realistic is this approach after all the United States is still a huge Market there has long been a healthy trade relationship between Sweden and the United States especially in the automotive and advanced engineering Fields you may recall that Volvo produces special models for the American
market and Ikea sells huge volumes could these new tariff Wars end this friendship members of the European Union Commission have already signaled that if the Trump Administration implements tariffs we will launch a retaliatory list Sweden's trade ministers are not shy about saying we keep all viable options on the table nevertheless Swedish government officials are trying to convince the world that the country has no plans to withdraw its life sciences investments from the United States but rather that Sweden is safer than ever for investments in science and technology we are still a peaceful economy and a
center of innovation we will not be shaken by Trump's decisions but will this rhetoric convince the United States Administration there is talk of a 2.0 version of Trump's aggressive policies the expectation that large tariffs will be imposed on Europe especially in the automotive sector has made the European Union especially Germany nervous Sweden is a small but strategic player in this game because it has a global influence in many segments from vehicle production to spare parts and Engineering Technologies although it does not have as huge an economy as Germany in the automotive Union it has a
significant share thanks to its innovative solutions and brand recognition will Swedish automotive and Engineering Giants be at the Forefront of the European Union's Collective retaliation if Washington raises tariff walls the European Union will respond with an equally tough response say most economists a list of retaliatory measures is being drawn up ranging from agricultural products alcoholic beverages and textiles to the services of technology companies it is not yet clear in which areas Sweden will play an active role some argue that Sweden will focus more on Asia and the Middle East if European companies withdraw from the
United States market and that distant markets will gain value for new trade agreements in automotive of course not everything is that simple would establish Brands such as Volvo and Scania sacrifice the United States Market is a puzzling question on the other hand there is a completely different agenda on the life sciences side no matter how tough Trump's tariffs get Sweden will remain a protected and attractive country for investments in health technology and biotechnology Swedish ministers say these statements may lead International investors to wonder will Sweden's response to tariffs and taxes be more moderate this is
because the life sciences and pharmaceutical sectors often work closely with research and development centers in the United States if the trade War escalates clinical trials and trade in medical products could also suffer but Sweden wants to protect itself by saying we offer a positive business climate we have long-term security but how strong a shield is this rhetoric against the United States administration's actions when the Winds of protectionism blowing the economy the automotive sector is usually the first to worry even steel and aluminum tariffs have a boomerang effect pushing up Automotive costs and putting producers under
price pressure although the New Order dubbed Trump 2.0 tariffs has not yet fully kicked in there is serious unease in Europe especially Brands like Volvo and Sab may be calculating how to compensate for the potential Market loss in the United States if the European Union unites with all its members in the idea of joint action it seems unlikely that Sweden will take a separate decision on this issue it is a political necessity for Sweden to say since the European Union is retaliating we are in otherwise they do not want the perception in Brussels that Sweden
is abstaining however it is not hard to Guess that bilateral talks are going on in the background with the idea of let us not burn Bridges with the United States could this showdown lead to a big loss for both sides if a new trade War flares up between the European Union and the United States everyone will suffer some analysts warn while the European automotive industry exports heavily to to the United States United States technology companies and the agricultural sector also have a significant share of the European Union Market smaller but high-tech economies such as Sweden
would also take their share of the hit in a worst case scenario perhaps European firms will shift their production to countries other than the United States while United States firms will look for alternative markets to the European Union such disorganization could create additional costs and inefficiencies in global Supply chains the result consumer prices rise growth rates fall and trade volumes shrink in other words nobody wins but the nobody wins thesis may not always hold Sweden can play a leading role in alternative markets to the United States by making a breakthrough in Next Generation engineering and
green technologies some experts say perhaps this crisis offers an opportunity to expand Sweden's startup ecosystem to other geographies emerging economies in Asia are demanding environmentally friendly Technologies infrastructure projects are gaining momentum in Africa Middle Eastern countries are investing in digital transformation Swedish companies may turn to the strategy of if things are going badly with the United States let us focus on Asia and Africa of course the voices of those who say it is difficult to replace the United States in terms of sales volume or profitability are also loud indeed simply abandoning a huge consumer Market
is not something that any country would prefer that is why the Swedish government's statements have both a harsh tone and a call for dialogue on the one hand the message is we will participate in coordinated retaliation with the European Union and on the other we want to preserve our long-term strategic ties with the United States the message is clear we are not in favor of a customs War but we will not leave the European Union if we have to respond to sanctions with sanctions if Sweden does not act in concert with its European neighbors it
could be isolated within the European Union this would lead to a post brexit disorganization that Brussels does not want therefore the decision for a common front becomes a political necessity if you are wondering then how will they save relations with the United States time will give you the answer the Trump Administration is known for its tough stance but the fact remains that there are no winners in trade Wars perhaps Washington could reach a new compromise with the European Union then Sweden could breathe a sigh of relief from the retaliatory trenches of course the issue is
not limited to Automotive or Steel in the post-pandemic period we have entered a period in which Supply chains are being restructured and the Strategic importance of medical and technological products has increased Sweden has an advantage here as a country known for its high research and development spending there is a great competition between the European Union and the United States especially in areas such as the Aging population digital Health Solutions pharmaceutical and vaccine Technologies if this competition does not fall victim to political rivalries Sweden would like to work with both markets in a win-win model but
if protectionism Rises there may be pressure to choose sides what will a pro- free trade country like Sweden do in this dilemma where do you think this confrontation will lead is the Swedish government really ready to enter an allout tariff war with the European Union against the United States or is this just diplomatic intimidation how will the automotive and Engineering Giants position themselves how will the markets be affected by this tension we look forward to your comments what do you think Will trump 2.0 tariffs Shake Europe again will the trade Wars become permanent or will
the parties find a middle ground thank you for watching you can subscribe to our Channel turn on the notification Bell and support us by liking our video so that you do not miss the latest analysis on such global economic developments see you in the next broadcast goodbye
