STOCKHOLM (Reuters) -A tariff level of 10% is the best that the European Union can expect from negotiations with the United States, Sweden’s Finance Minister Elisabeth Svantesson said on Tuesday.
“We have to reckon on 10% in any case.
That’s the lowest we can expect,” Svantesson told reporters.
Svantesson said uncertainty about tariffs as well as the war in Ukraine and the conflict in the Middle East meant that Sweden’s economy remained weak.
In June, the government cut its forecast for growth this year to 0.9% – half the 1.8% it expected in May.
Nevertheless, Svantesson said the economy was fundamentally strong and robust government finances meant Sweden could easily finance its rapid increase in defence spending, though there would be less room for other reforms in the autumn budget.
Think tank NIER reckons the government has room for 34 billion Swedish crowns ($3.54 billion) in unfinanced measures in the upcoming budget bill, which will be published in September.
Svantesson said the budget would focus on strengthening households and getting more people into work.
“It is not the time for tax hikes, quite the opposite in the current situation,” she said.
($1 = 9.6162 Swedish crowns)
(Reporting by Simon Johnson, editing by Stine Jacobsen)
