Sweden feels heat from the Trump tariff – and there is more in the future

The Minister of Finance in the Scandinavian State told CNBC – before the Minister of Finance in the Scandinavian state played for CNBC – before the Minister of Finance in the Scandinavian state played for CNBC – before the Minister of Finance in the Scandinavian state played for CNBC – before the Minister of Finance in the Scandinavian state participated for CNBC – before the Minister of Finance in the Scandinavian state of the Scandinavian state of the Sweden economy and the family in Sweden played the heat From American commercial tariffs.

“Our economy and public financing are very strong. We have low debts and we can deal with a lot. But eight of 10 Swedes provide or invest their money in stock money and markets, etc.. So when the market rose, that was expensive for living families.”

She added: “(US President Donald) Trump is really playing high quotas here, which is a game without winners, really, which is expensive for families, and this makes me sad.”

She left uncertainty about the United States’s commercial policy of its mark on the Swedish and international financial markets. Central Bank in Sweden, Riksbank, Notice last week The sharp transformations in the American trade and security policy caused “large market movements during the spring and necessitated more uncertainty than usual.”

Other signs have emerged that the threat of definitions affects the wider Swedish economy, With government data It was released last week, which shows that the economy has reduced 0.2 % in the three months until March, on a quarterly basis.

The Ministry of Finance in Sweden reviewed its growth forecast for 2025 and 2026 last month, Expect 1.8 % expansion this year and 2.3 % next yearSaying definitions and uncertainty to reduce the prospects for the country’s growth.

“We do not know whether the definitions will end, but the uncertainty and the inability to predict – which hurts our economy,” CNBC told CNBC.

Nation I actively encouraged retail savings in the capital markets for decadesEnabling citizens to invest in stocks and investment funds and make this practice more common than other European countries, such as the United Kingdom

Demographic distribution and distribution in Sweden, The International Financial Agency, FinansINSPEKTIONEN This savings on the smaller and blind limbs of the spectrum tend to put their money in savings accounts. A larger part of the new mid -age Swedish savings is in stocks and investment funds, from retirement pension plans and fixed income to sustainable funds and technology that focuses on technology.

Swedish families retained liquid financial vulgarity – assets in bank accounts, funds, shares, or other savings that generate a cash return – a total of 268 billion Swedish chrons ($ 27.8 billion) in 2024, with 138 billion Swedish chrons ($ 14.3 billion) in investment attachments, Sweden Statistics Agency said in MarchWith the Swedish average of about 1000 Swedish chrons every month in such funds last year.

At the end of the first quarter of 2025, the total assets of the fund in Swedish investment funds reached 7.75 trillion Swedish Crohnor, According to the latest data from the Swedish Statistics Authority.

“Eight out of ten Swedes provide money, and if the savings of mandatory pensions are included, we are all schools of funding,” says FondBolagens Förening – which aims to enhance confidence and protect money in coordination of savings – on its website, describing the country, describing the country, “The global pioneer in providing funds“

The association told CNBC that Trump’s advertisement in April that he would impose an import tariff on a wide range of trade partners, friends and enemy alike.

“The savings of the Swedish Fund for stock investments are used up and down in the short term and have a long investment horizon,” Friedrich Peterson, chief analyst at FondBolagens Förening, told CNBC on Wednesday.

“After saying this, in our statistics, we can see that at the beginning of this year, and until now, the active savings sold the money, and they bought European and Swedish boxes,” he said.

Morten Lund, the chief economist in Scandinavian countries at JPMorgan, told CNBC on Wednesday that Trump’s tariff “has a clear impact on home feelings” and that this could feed on the wider economy.

He said: “So what we can see is that the family’s confidence has moved throughout the American elections, from being the highest market in the advanced markets until now, it has already decreased to be the lowest.

Lund said that low home confidence can run until consumption, starting with the latest growth data.

“We believe that there will be success. We got the first numbers of GDP from the first quarter, and they refused, and that was a clear disappointment, and based on the whereabouts of the confidence numbers now, we must also see a very weak number here in the current quarter.”

Sweden is a country based on export: Exports reached about 55 % of the national GDP (GDP) in 2024, According to the country’s central bankIts economy has made the most vulnerable to the definitions imposed by President Trump on the European Union.

The move – and definitions of other commercial partners – was based on what Trump sees unfair commercial practices by the bloc, which it denies, and the constant trade deficit run by the United States with the European Union.

Trump initially imposed 20 % duties The European Union must as part of the “mutual definitions” that were announced in early April, before Reduce To 10 % for 90 days on April 9 to give time for both sides to negotiate new trading conditions.

The European Union and the United States were imprisoned in talks to try to reach a commercial deal, but Trump said in late May that it recommends a 50 % straight duty on goods coming from the mass amid stop negotiations.

European Commission President Ursula von der Lin I managed to persuade the president to give more time talks However, as matters stand, the European Union has until July 9 to reach a deal with Washington.

Sweden’s largest exports to the United States are cars, machines, pharmaceutical preparations, paper products and iron, steel – It is now 50 % of the US import tariff Iron ore. The Riksbank team notes that most Swedish exports go to North or other European countries, but the United States is the third largest individual export country, as Riksbank is noted.

“Of course, we are highly dependent on exports,” CNBC told CNBC.

“With this uncertainty, companies retreat, waiting for investments, because they do not know what will happen. Will the tariff will be 10 or 20 %, or anything else?” I asked.