Sweden feels heat from tariffs on Trump – and ahead more

Sweden’s economy and households feel warm from US trading tariffs, said the CNBC Finance Minister of the Scandinavian country – before the full force of the fees even entered the game.

“Our economy and state finances are very durable. We have low debt and we can handle quite a lot. But eight of the 10 Swedes saves or investing in funds, stock markets and so on. So when … the market went up and down, it was expensive for households,” said the finance minister on Tuesday.

“(US President Donald) Trump really plays high rates here, and this is a game without winners, and it’s expensive for households, and it upset me,” she added.

The uncertainty around the US trade policy has left its mark on the Swedish and international financial market. Central Bank Sweden, Rixbank, noted last week The fact that sharp shifts in trade and security policy in the US has caused “significant market movements in the spring and lead to greater uncertainty than usual.”

Other signs have emerged that the threat of tariffs affects the broad Swedish economy, with state data It came out last week, showing that the economy decreased by 0.2% three months before March, quarterly.

The Swedish Ministry of Finance has revised its growth forecasts 2025 and 2026 Forecasting extensions by 1.8% this year and 2.3% next yearSpeaking, tariffs and uncertainty reduce the country’s growth prospects.

“We do not know whether the tariffs will end, but uncertainty and unpredictability are harming our economy,” said Svantesson CNBC.

Nation Decades actively encouraged retail savings in capital marketsAllowing citizens to invest in stocks and investment funds and do practice much more ordinary phenomena than in other European countries like the UK

Assessment of Distribution and Demographic Demographics in Sweden, Financial Watch FinansSinspektionen noted in March This saving at the younger and old ends of the spectrum, as a rule, invest their money in savings accounts. Most new savings for the Swedes of the middle age are in promotions and investment funds, ranging from pension schemes to fixed income to sustainable and technological funds.

Swedish households conducted a liquid financial savings – assets in bank accounts, funds, stocks or other savings that bring money profitability – totaling 268 billion Swedish Kronor ($ 27.8 billion) in 2024, and 138 billion Swedish regions ($ 14.3 billion) funds, in investment funds, investment funds engaged in investment funds, in investment funds involved in investment funds involved in investment funds engaged in investment funds occupying investment funds, contain In March, the Swedish Statistics Agency reportedWith the average Swedish, save about 1000 Swedish regions monthly in such funds last year.

At the end of the first quarter of 2025, the total assets of the fund in the Swedish investment funds amounted to 7.75 trillion. Swedish Cronor, According to the latest data from Sweden’s statistics.

“Eight of the ten Swedes will save on funds, and if the mandatory premium pension savings are included, we are all in savings,” says the Swedish Investment Funds Association (Fondbolagens Förening) – which is aimed at promoting and protecting confidence in the funds as a format, ” the country as an description “World Leader in Economy Fund“

In April, Trump’s announcement that he would impose import tariffs on a wide range of trading partners, friends and enemies, proved the main source of market and economic uncertainty, and this causes some Swedish Nervous Fund tabs, the CNBC Association said.

“The Swedish Fund’s depositors are used for capital investments that go up and down in the short term and have a long investment horizon,” said Fredrik Petterson, the chief analyst fondbolagens föring, CNBC on Wednesday.

“Having said that in our statistics, we see that earlier this year, the fund has been sold by US funds and bought European and Swedish funds,” he said.

Morten Lund, Chief Economist of Scandinavia in JPMorgan, said on Wednesday CNBC that Trump’s tariffs “have a rather obvious impact on the moods of households” and that it can enter the wide economy.

“What we see is that the confidence of the households has moved around the elections to the US: from being the highest in the developed markets to this, it would actually fall into the lowest. So, it was a pretty significant shock, and I think it is fair to say that it was very related to the uncertainty,” he said.

Lund said low confidence in households could filter before consumption, judging by the latest growth data.

“We think there will be a hit. We got the first GDP numbers from the first quarter, they refused, and it was a clear disappointment, and, based on where the confidence numbers are now, we should also see a rather weak amount here in the current quarter,” Lund said.

Sweden-is a country that depends on exports: Exports amounted to about 55% of the national gross domestic product (GDP) in 2024, in 2024, According to the Central Bank of the countryHaving made a broader economy vulnerable to the tariffs imposed on the EU by President Trump.

This step – and tariffs on other trading partners – relied on the fact that Trump perceived as unfair trade practices on the part of the block that he denies, and a sustainable trade deficit that the United States is working with the EU.

Trump initially imposed 20% of duties on the EU as part of its broad “mutual tariffs” announced in early April, earlier Reduction of speed up to 10% for 90 days on April 9 to give both sides to agree on new trading conditions.

The EU and the US were recorded in the negotiations to try to reach a trade transaction, but Trump said in late May that it recommends a direct 50% on duty on goods coming from the block against the background of the negotiations.

President of the European Commission Ursul von der Leyen managed to convince the president to negotiate more time But, as it stands, the EU has by July 9 to reach a deal with Washington.

The largest exports of Sweden to the US is tumos, pharmaceuticals, paper products and iron, steel – currently subject to 50% US tariff in the US – And iron ore. Most Swedish exports go to other northern or European countries, but the US is the third largest one -off country, Rixbank notes.

“Of course, we are very dependent on exports,” Sweden’s finance minister “Europe Early edition” said.

“With this uncertainty, the company holds back, waiting for investments because they don’t know what will happen. Will the tariff on 10 or 20%, or something else?” she asked.