In a recent speech in Kiruna, Anna Breman addressed the potential effects of increasing trade barriers on Sweden’s economy and inflation. She highlighted the tumultuous beginning of 2025, marked by conflicting economic policy statements from the United States, which contribute to volatility in financial markets and uncertainty about economic activity.

Breman stressed that trade barriers present significant risks for Sweden, an economy heavily reliant on exports, particularly in the mining sector. The impact of these barriers will depend on several factors, including:

• The level of tariffs imposed
• The countries involved
• The respective responses of those countries

If the U.S. were to impose extensive tariffs and the EU retaliated, it could impede Swedish economic growth. While the inflationary consequences remain unclear, it is important to note that trade barriers generally lead to increased inflation. However, a decline in economic performance could lower demand, which in turn may reduce inflation rates.

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