In response to Donald Trump's threat of imposing 30% tariffs on Europe, Sweden's government proposes a unique strategy to counteract the economic impact. By lowering tariffs on goods from other countries, the plan aims to pressure the U.S. into negotiations while minimizing harm to the European market. This initiative, led by Minister Benjamin Dousa, seeks to strengthen the EU's bargaining position and mitigate inflation risks.
Dousa's Strategy to Counter Trump's Tariffs: A Bold EU Proposal
Dousa's Strategy to Counter Trump's Tariffs: A Bold EU Proposal
Trump threatens Europe with 30% tariffs. Now, the government presents a proposal on how the EU should tackle the crisis.
Donald Trump threatens to impose 30% tariffs on Europe and Sweden.
Minister Benjamin Dousa (M) calls the development unfortunate.
– We have had productive and intense negotiations with the USA for several weeks now, and we were very close to the finish line. Despite this, the USA chose a different path, he says.
In response to the tariff threat, the government proposes – as the first country in Europe – that if tariffs are raised on certain goods from the USA, tariffs should simultaneously be lowered on goods from other countries. The idea is to put pressure on the US economy and make them more willing to negotiate, according to Benjamin Dousa.
– If we are forced to impose counter-tariffs and countermeasures against the USA, which we will be if Donald Trump stands by his 30% tariffs, we want our response to hit the American economy as hard as possible and as little as possible against ourselves, both Europe and Sweden, says the minister.
Increasing Resilience
He says the initiative, on one hand, puts pressure on the USA to negotiate with the EU, and on the other hand, mitigates the consequences for the European market.
– The risk is otherwise that we shoot ourselves in the foot and make products more expensive for both companies and consumers, thus fueling inflation at home.
The minister will meet with Europe's trade ministers in Brussels on Monday to present the proposal. He believes it could have a significant impact – on both sides of the Atlantic.
– Above all, it would mitigate the consequences of raising tariffs against the USA and would also make resilience much greater. If we raise tariffs against the USA and simultaneously lower tariffs against everyone else, we will be able to maintain such tariffs much longer, which strengthens our negotiating position with the USA, he says.
“Ball in USA's Court”
The 30% tariffs are set to take effect on August 1st, unless the parties reach an agreement. Ursula von der Leyen, President of the European Commission, calls the threat “very provocative,” and Prime Minister Ulf Kristersson says he “regrets” it. According to Benjamin Dousa, the door for negotiation and finding a solution from the EU's side is “always open.”
– Right now, the ball is in the USA's court, and they need to come back with exactly what they want, he says.