EuropeInternational RelationsNorth America

Sweden Warns of Trade War as US Tariffs Threaten EU Relations

BRUSSELS – Sweden’s Minister for Foreign Trade, Benjamin Dousa, on Monday sharply criticized the United States’ decision to impose 30% tariffs on EU goods, warning that the move could escalate into a full-blown trade war.

Speaking in Brussels ahead of an emergency meeting of EU trade ministers, Dousa described Washington’s decision—set to take effect on August 1—as “unfortunate, unacceptable and surprising,” adding, “The US has escalated the situation on several levels now, and we cannot rule out that they will drag us into a trade war.”

Dousa noted that negotiations with the US were close to yielding a preliminary deal. “We have always tried to get a negotiated solution that we can all live with, but then the White House still chooses this path,” he told Swedish broadcaster SVT. He added that the EU has so far refrained from retaliatory measures and has acted within legal frameworks.

The minister revealed that the EU had already approved a €20 billion countermeasure package and was preparing an additional €70 billion in tariffs if talks fail. At the same time, he said the EU would seek to expand trade elsewhere, mentioning free trade agreements with South America, India, and Indonesia as strategic alternatives.

The row intensified after US President Donald Trump announced the new tariffs over the weekend, addressing letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum via Truth Social. The move jeopardizes efforts to finalize a broader US-EU trade deal this month.

Von der Leyen responded by reaffirming the EU’s readiness to reach an agreement by August 1, while pledging to defend the bloc’s interests through “proportionate countermeasures” if necessary.

 

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