US trade policy shifts

A federal court has challenged Trump’s emergency tariff authority just as new US steel duties and rising China–EU tensions reshape the trade landscape.

This week, the US House passed a tax bill that could trigger retaliatory measures and raise investor risks. With tariff pressure mounting and the China pause at midpoint, Swedish companies should brace for shifting rules, rising costs – and potential escalation.

The US is accelerating limited trade deals ahead of the July tariff deadline, with the UK agreement marking the first. This was followed by an announcement from the US and China to cut reciprocal tariffs for 90 days.

As President Trump marks his first 100 days back in office, trade policy remains the central driver of economic and geopolitical shifts. With sweeping tariffs now in effect, the end of de minimis treatment for Chinese imports, and signs of stress in US consumer sentiment and logistics, Swedish companies operating in or exporting to the US must stay alert and seek opportunities in this dynamic trading landscape.

Trade tensions are shifting fast, with the 90-day tariff pause ongoing, new US measures on e-commerce taking effect, and negotiations with key partners underway. Swedish companies should stay alert to emerging risks.

Amid the 90-day pause on reciprocal tariffs – alongside a universal 10% tariff on most imports – negotiations with several countries are underway. Meanwhile, the US has launched national security investigations into semiconductors, pharmaceuticals, and critical minerals, signalling potential for more targeted trade actions ahead.

What a roller coaster this past week has been! Markets have been all over the place as we've watched the drama unfold around those sweeping U.S. tariffs, followed by trading partners firing back with their own measures, only to see a surprising policy reversal that sent markets into a tailspin.

In a bold move that could reshape the international trade landscape, President Trump announced sweeping new tariffs during his 2 April 2025 “Liberation Day” speech. Backed by two Executive Orders, the new policy package imposes reciprocal tariffs on U.S. trading partners and removes key exemptions for low-value imports from China and Hong Kong.

President Donald Trump has declared 2 April “Liberation Day,” marking the roll out of a long-anticipated tariff plan aimed at countering what he describes as decades of unfair trade practices.

With tariffs set for 2 April, Swedish companies should move from reacting to planning – especially in sectors targeted by the current U.S. administration.

Steel and aluminium tariffs are expanding, with no exemptions or quotas. The EU has announced countermeasures, and energy storage projects will see further tariff hikes starting in 2026.

Last week, the U.S. imposed new tariffs on Mexico, Canada, and China, triggering retaliatory measures. However, goods covered under USMCA from Mexico and Canada received broad exemptions. The uncertainty surrounding these tariffs and evolving administration policies has fuelled recession concerns, as Republicans push a budget reconciliation bill that could pave the way for tax cuts

The U.S. has paused military aid to Ukraine, while Trump’s tariffs – 25% on Canada and Mexico, 20% on China – take effect, sparking retaliation. Swedish businesses face new tariffs, trade uncertainty and ESG shifts.

Trump’s new tariffs target broad negotiations, trade imbalances, and U.S. industry protection. Cleantech funding pauses may impact Swedish enterprises with U.S. government contracts.

The latest round of U.S. tariffs, announced by President Trump on 1 February 2025, sets the stage for major shifts in global trade. While Canada and Mexico have secured temporary pauses, these exemptions are due to expire soon, increasing the likelihood of further trade actions – whether through retaliatory tariffs or additional delays.