The latest tariff announcements: What's changing and who’s affected
  • De Minimis Exception: The USD 800 exemption for low-value shipments no longer applies to Chinese goods, significantly impacting small importers and e-commerce businesses. (Implementation is currently delayed while agencies develop enforcement systems.) 
  • Canada & Mexico: 25% tariff on all imports, except for Canadian energy and oil, which face a 10% tariff. (Currently, there is a 30-day delay negotiated individually by each country.) 
  • China: A new 10% tariff on all Chinese goods, adding to existing trade restrictions. 
EU and Swedish impacts
  • Eliminating the De Minimis Exception for China: The USD 800 exception for low-value shipments under 19 U.S.C. 1321 no longer applies to Chinese goods.  

This change has been delayed as of 7 February to give agencies time to implement systems for collecting payments on millions of small packages. Once in effect, the rule will apply to goods imported directly from China, as well as those shipped from other countries – such as Sweden or EU member states – that have not undergone substantial transformation before entering the U.S.  

For now, products from the EU and Sweden remain eligible for the De Minimis Exception. However, businesses should carefully assess whether imports containing Chinese components meet the criteria for substantial transformation. 

  • Steel & aluminium tariffs (announced 10 February): A 25% tariff on all imported steel and aluminium will significantly impact construction, manufacturing, and supply chains reliant on foreign metals. 

The end of tariff-rate quotas and country-specific exemptions means EU companies that previously benefited from relief will now face a flat 25% tariff. The inclusion of more downstream derivative products adds uncertainty, as further expansions may be introduced by the U.S. Department of Commerce. While there is an exclusion process for U.S.-origin steel and aluminium, the practical application remains unclear. 

For EU businesses, these shifts present immediate cost challenges and long-term strategic concerns. Businesses with U.S. manufacturing operations that rely on imports may need to reassess supply chains or explore alternative markets to remain competitive. The potential for EU retaliation could further complicate transatlantic trade, potentially leading to new restrictions on U.S. goods entering the European market.  

Given the ongoing uncertainty, EU companies should closely monitor developments and consider proactive measures such as diversifying suppliers, leveraging trade agreements, or applying for targeted exemptions. 

Tariffs: strategy or stalemate?

Beyond immediate trade impacts, Trump’s “Fair and Reciprocal Plan” suggests that these tariffs are part of a broader strategy to reduce the trade deficit and pressure trading partners into more favourable agreements. This introduces uncertainty around the permanence and implementation of the tariffs. The administration’s stated objectives include: 

  • Addressing tariff disparities: Highlighting cases like India’s 100% tariff on U.S. motorcycles compared to the U.S.’s 2.4% tariff on Indian motorcycles. 
  • Target foreign protectionism: Countering digital service taxes and import restrictions that put American businesses at a disadvantage. 
  • Reduce the U.S. trade deficit: The U.S. trade deficit surpassed USD 1 trillion in 2024, driven largely by deficits in agriculture and manufacturing. 

If the administration uses these tariffs primarily as negotiating tools, actual implementation may be suspended or cancelled altogether.  

Navigating the uncertainty: Key actions for Swedish companies

Swedish businesses exporting to or operating in the U.S. should stay alert, as the situation is evolving rapidly. New tariffs could impact key sectors like automotive, steel, and agriculture while increasing costs for Swedish manufacturers operating in the U.S. 

While no EU tariffs have been announced, an update is expected, potentially impacting more Swedish exporters and global supply chains. Swedish companies manufacturing in the U.S. should assess their supply chains, identify the origins of key inputs, and explore domestic alternatives. 

Key recommendations for Swedish businesses active in the U.S.: 

  • Evaluate the potential impact of higher tariffs on operational expenses, particularly if importing from China, Mexico, or Canada. 
  • Prepare for increased uncertainty, as the administration’s use of emergency authorities complicates cost predictions.
  • Explore alternative sourcing and manufacturing options. 
  • Monitor updates on steel and aluminium tariffs, which currently apply to EU businesses but are subject to change. 
Get in touch

Business Sweden has extensive experience in conducting tariff scenario analyses, localisation evaluations, and developing potential supplier lists. If you need support in evaluating your supply chain and the potential impacts these tariffs on your U.S. operations, please contact Johan Karlberg.