Double blow for Swedish company

Trump's tariffs

Gnosjö company hit hard by Trump's tariffs: "Complex and uncertain situation"

Erik Melin

Updated 13.09 | Published 11.04

Machine safety company Axelent has its sights set on the US.

But Trump's tariff offensive makes the road there bumpy.

- We are directly affected, says CEO Karin Sandén Ahlqvist.

Quick version

• Axelent, a machine safety company from Gnosjö, has the US as an important market for future growth but is being negatively affected by the new US tariffs.
• The US's new tariffs on steel and other products from the EU are creating increased costs and uncertainty for the company, as steel is a central part of their products.
• Axelent is considering bringing forward its plans to start production in the US as a solution to the economic and trade challenges, but wants to analyze developments carefully first.

The municipality of Gnosjö is the center of the small business culture that is usually called the “Gnosjö spirit” and has fostered large Swedish companies such as SEB and Nordea. But there are also around 250 manufacturing companies there today. One of them is Axelent in Hillerstorp. Since the 90s, they have been manufacturing safety products for various types of industries, such as protection for various machines and ramparts for vehicles.

         
          Karin Sandén Ahlqvist, CEO. Photo: Pressbild

The company is now global and an important market for the company is the USA.

– Above all based on future growth. Today, we export around ten percent of our sales to the USA with the hope that we will grow significantly in the coming years, says Karin Sandén Ahlqvist, the company’s CEO.

US President Donald Trump. Photo: Evan Vucci / AP

Double blow for the company

But the expansion in the West may encounter a patrol with the US president's tariff offensive. In March, steel tariffs were introduced and on the night of April 3, new, broad tariffs of 20 percent were introduced against all imports from the EU.

- Steel is a central component in the majority of our products. Now other products we export are also covered, which means that we are affected both directly by the increased tariff costs and by the long-term consequences of a new trade climate, says Karin Sandén Ahlqvist.

She believes that an important issue to follow is how the US market and the economy are affected by the current trade climate.

- What it means for the willingness to invest, which is crucial for our business. One possible consequence that we see is that domestic producers raise their prices as a result of increased demand for American raw materials, which in turn could drive up inflation in the US

– These factors create a complex and uncertain situation that we are monitoring closely.

In March, US President Donald Trump introduced steel tariffs and on the night of April 3rd, new, broad tariffs were imposed on all imports from the EU of 20 percent. Photo: Noah Berger / AP

May be forced to change plans

Axelent has previously had plans to build up its own production in the US to increase growth. Now the plans may need to be accelerated. But not without first wanting to let the dust settle.

– We stand firm in our long-term growth strategy, but one of our strengths is our flexibility in our implementation. This means that we may need to bring forward our plans for production in the US, depending on how things develop, says Karin Sandén Ahlqvist.

– At the same time, we want to wait and analyze the situation carefully. Are the current tariffs final, or could further changes come?

On Monday, April 7, an extraordinary meeting will be held within the EU to discuss possible retaliatory tariffs against the US.

– The countermeasures may come into effect in mid-April, said Minister of Foreign Trade Benjamin Dousa in connection with Trump