”Trade wars are always dangerous”
Donald Trump is threatening to impose punitive tariffs on the EU. Rikard Forslid, a professor of economics at Stockholm University, speaks to TT News Agency and SVT about the potential impact on Swedish industry.
Rikard Forslid is a professor of economics at Stockholm University. Photo: Sören Andersson
Trump has already decided to slap hefty tariffs on goods from Mexico, Canada, and China – countries that have retaliated with economic sanctions against the United States. Now, he is vowing to impose tariffs on the European Union, sparking strong reactions around the world.
”Trade wars are always dangerous and almost always end with everyone losing,” Forslid tells TT News Agency.
Rikard Forslid is an expert on international trade and warns that Swedish steel and engineering industries could take a hit if the U.S. moves forward with tariffs on the EU. However, he doesn’t consider a ten percent tariff to be disastrous.
This is a serious miscalculation by Trump.
The consequences for Swedish consumers will depend on how the EU responds. If counter-tariffs are introduced, prices on American goods could rise, fueling inflation and making it harder for Sweden’s central bank to cut interest rates.
Swedish companies with investments in North America will also feel the effects, particularly those with a presence in Mexico. Forslid compares the U.S. trade zone to the EU’s internal market and argues that Trump’s tariff policy is disrupting well-established supply chains, which could harm both North American and European industries.
”This is a serious miscalculation by Trump,” Forslid says.
More about Rikard Forslid
Interview with TT (in Swedish)
Last updated: 2025-02-03
Source: Department of Economics