U.S. pauses military aid to Ukraine – what’s behind it? 

In a significant policy shift, the Trump administration has halted all U.S. military aid to Ukraine, affecting weapons, vehicles, and ammunition, including shipments already in transit.  

Following a tense exchange, Trump told Zelenskyy to return “when he is ready for peace,” using aid as leverage to push Ukraine into negotiations. 

For European leaders, this signals a policy shift. French President Emmanuel Macron and UK Prime Minister Keir Starmer pressed Trump on Ukraine and NATO, but Washington’s stance is changing. This could have broader implications for EU-U.S. relations and future security commitments. 

New tariffs on Mexico, Canada, and China 

While foreign policy shifts, trade tensions are escalating. As of midnight U.S. time, Trump’s new tariffs are in full force:

  • 25% on Mexican and Canadian imports – impacting auto parts, agriculture, and other key industries 
  • 20% on Chinese goods – doubling last month’s levy 
  • More retaliation expected – Canada and China have already announced countermeasures 

This isn’t just a political move – it’s a major shift in trade policy. With higher costs, supply chain disruptions, and increasing unpredictability, companies need to assess their exposure and prepare for potential knock-on effects.  

Uncertainty over potential EU tariffs 

Trump has repeatedly threatened 25% tariffs on EU imports, claiming the bloc was designed to undermine the U.S. While no action has been taken yet, uncertainty remains.  

This time, Trump appears to be moving away from negotiating with the EU as a bloc and toward bilateral deals with individual countries. This could create more unpredictability for European exporters – including Sweden. 

Swedish companies brace for steel and aluminium tariffs 

Amid broader trade disputes, one tariff is already locked in – U.S. steel and aluminium tariffs take effect on 12 March. 

For Swedish companies relying on Tariff-Rate Quotas (TRQs), General Approved Exclusions (GAEs), or national exemptions, this could mean: 

  • Higher costs for Swedish exports to the U.S. 
  • More paperwork and potential delays navigating tariff adjustments 
  • Competitive disadvantages if competitors still hold exemptions that your company has lost 

If your company previously benefited from an exemption, now is the time to review your status under the U.S. Department of Commerce’s exemption list.  

Shifts in ESG and cleantech in the U.S. 

Alongside trade policy shifts, ESG strategies in the U.S. are evolving.  

Under Biden, green tech investments surged, driven by policies like the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL). Now, Trump is pledging to roll back green funding, but sustainability isn’t going away – it’s simply being reframed. 

Rather than focusing on climate goals, companies are adapting their language to align with the new political climate:  

  • “Energy security” instead of “decarbonisation” 
  • “Resilient infrastructure” instead of “sustainability projects” 
  • “Advanced manufacturing” instead of “green tech” 

For Swedish businesses operating in the U.S., the takeaway is clear – sustainability remains a priority, but how it’s framed is changing. Companies that adjust their messaging and strategy will be best positioned to navigate this shift. 

What to look out for this week
  • Trump’s State of the Union (4 March) – Expect more signals on trade, Ukraine, and economic policy. 
  • Steel and aluminium tariffs take effect (12 March) – Check your exemption status now 
  • EU-U.S. trade relations – Will Trump escalate tariffs on Europe? 

If your business is affected by these changes, now is the time to review your supply chain, assess trade risks, and plan for potential disruptions. 

Get in touch 

Business Sweden has extensive experience in tariff scenario analyses, localisation evaluations, and supplier assessments. If you need support in assessing your supply chain or navigating the impact of these tariffs on your U.S. operations, please contact Johan Karlberg. 

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