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AthrillatheHunt Here is an article in Sweden about trade to USA. They will trade more with China going forward, and less with USA. And USA will have inflation.
Analysis: Economic Backfire – The Costly Impact of Trump's proposed Tariffs"This analysis examines the potential effects of the United States implementing a tariff regime with additional tariffs on imports from China and other countries, as pledged by Donald Trump ahead of the upcoming November 2024 election. The findings indicate that all analysed countries and regions would experience negative growth effects and a significant decline in international trade.
Trade Impacts on Sweden and the EU
For Sweden, the overall trade impact may be moderate; however, exports to the United States are projected to decrease by approximately 16 per cent. This is partly due to a sharp decline in exports from the motor vehicles industry, which accounts for nearly one-third of Sweden's total exports to the US. The EU as a whole would similarly experience a decline in economic exchange with the US. However, the EU’s imports from China would increase by around 7 per cent.
Consequences for the United States and China
The US would suffer the most from these tariffs, with total imports and exports expected to drop by 10 per cent and 14 per cent, respectively. This decline would particularly impact the very industries the tariffs aim to protect, as many of them are deeply integrated into global value chains.
China is expected to face a sharp 66 per cent reduction in exports to the US, compelling it to seek alternative markets. Although China may experience a relative decline in trade with the US exports increase to other regions, thus mitigating some loss.
Key risks associated with the implementation of the tariffs
Increased costs for businesses and consumers, ultimately contributing to rising inflation in the US.Tariffs may disrupt global trade flows, particularly hindering the exchange of green technologies, thereby exacerbating existing economic challenges.
Erosion of the integrity of the global trading system by weakening compliance with internationally agreed trade rules.
Retaliatory measures could result in escalating trade tensions and heightened political instability.
In conclusion, the broader consequences of such actions could be far more severe than initially anticipated.
What is the National Board of Trade Sweden?
The National Board of Trade is the Swedish government agency for international trade, the EU internal market and trade policy. Our mission is to facilitate free and open trade with transparent rules as well as free movement in the EU internal market. We provide the Swedish Government with independent analyses, reports and policy recommendations and take into account the views of businesses of all sizes in international trade policy-related matters."
